By Danny Vena, CPA
Publication Date: 2026-05-18 22:17:00
Artificial intelligence (AI) has been on a blistering run over the past several years, and its adoption shows no signs of slowing. These cutting-edge algorithms promise to change the technology landscape as we know it, and it’s been a windfall for companies at the forefront of this technology. Nowhere is that more apparent than in Nvidia (NVDA 1.38%).
The AI-centric chipmaker pioneered the graphics processing units (GPUs) that create lifelike images in video games. Those same processors are now the gold standard for powering AI, making Nvidia the de facto flag-bearer for the technology.
In the first quarter, Nvidia effectively doubled its position in CoreWeave (CRWV 3.27%), prompting investors to take a fresh look at the neocloud operator.
Image source: Getty Images.
The case for neoclouds
Cloud computing became widely available more than two decades ago, providing businesses with on-demand computing services. Neoclouds are the latest version of these services, offering GPU-as-a-service (GPUaaS) and AI-as-a-Service (AIaaS). CoreWeave is the largest and most well-known of these neocloud providers.
CoreWeave has a strategic partnership with Nvidia, giving the company something of a competitive advantage. By collaborating with Nvidia, CoreWeave has access to the company’s most recent state-of-the-art AI chips.
Nvidia already had a sizable position in CoreWeave, owning more than 24.2 million shares. According to a regulatory filing released after the market close on…
