By Adam Levy
Publication Date: 2026-02-01 22:23:00
Nvidia’s infusion supports a major customer, but CoreWeave still has debt.
Nvidia (NVDA 0.72%) has become a cash-generating machine. As demand for its GPUs soars amid the AI boom, its free cash flow has climbed to $77 billion over the last 12 months. It recently put $2 billion of that cash to work, adding to its investment in CoreWeave (CRWV 6.13%). The chipmaker now owns 11.5% of the company.
CoreWeave is a “neocloud” company, specializing in data centers designed for AI training and inference. It builds data centers and rents them out to big tech companies, including Microsoft, Meta, and one of its biggest investors, Nvidia. The news of Nvidia’s increased stake in the business sent CoreWeave shares higher, so investors may be wondering whether they should follow suit after the big move.
Image source: Getty Images.
Close ties with the AI leader
CoreWeave’s tight relationship with Nvidia puts it in an excellent position to serve its customers. It has ample access to Nvidia’s powerful GPUs, and the new deal with Nvidia ensures it’ll be able to build new cloud infrastructure using Nvidia’s Rubin platform, its Vera CPUs, and its BlueField storage system.
Additionally, Nvidia is acting as a backstop for CoreWeave’s buildout. Nvidia is obligated to pay for any unused CoreWeave capacity through April of 2032, up to $6.3 billion.
The plan is to use the $2 billion cash infusion from the stock sale to accelerate CoreWeave’s buildout of 5 gigawatts of AI data centers by 2030. But…
