By Danny Vena, CPA
Publication Date: 2026-01-27 15:59:00
The AI-centric neocloud provider just got a huge vote of confidence.
Advances in artificial intelligence (AI) over the past few years have captivated Wall Street and Main Street alike. These next-generation algorithms are changing the fortunes of companies across the tech landscape, and the most high-profile of these is arguably Nvidia (NVDA +1.64%).
The chipmaker was already the premier provider of the graphics processing units (GPUs) that rendered lifelike images in video games. Those same chips quickly become the gold standard for powering AI systems. Since the dawn of AI in early 2023, Nvidia stock has soared 1,180% (as of this writing), so when it takes an interest in another AI company, it captures investors’ attention.
Just this week, Nvidia nearly doubled its stake in CoreWeave (CRWV +9.72%), prompting investors to take a fresh look at the neocloud operator.
Image source: Getty Images.
Neocloud in a nutshell
While cloud computing is well established, the rise of the neocloud has just begun. Simply put, these specialty cloud operators provide customers with GPU-as-a-service (GPUaaS) and AI-as-a-Service (AIaaS) — and CoreWeave is the largest of the neocloud providers.
One key competitive advantage is the company’s strategic relationship with Nvidia, which gives CoreWeave access to the latest and greatest AI processors the chipmaker has to offer. Nvidia had already established a significant position in CoreWeave, holding more than 24 million shares. This week,…
