CoreWeave stock rose another 6% in premarket trading on Tuesday after a 5.7% rally in prior trading session, driven by a major strategic announcement from its key partner, NVIDIA Corporation.
The cloud infrastructure company's stock rose following news that NVIDIA is investing an additional $2 billion to purchase CoreWeave's Class A common shares at $87.20 per share. This substantial investment reflects NVIDIA's confidence in CoreWeave's business model, management team, and growth strategy as a cloud platform built on NVIDIA's infrastructure.
Furthermore, the two companies announced an expansion of their long-standing partnership to accelerate CoreWeave's construction of AI factories with a total capacity exceeding 5 gigawatts by 2030. This collaboration aims to promote the global scaling of AI applications, with the data centers set to run future generations of NVIDIA's AI systems. NVIDIA CEO Jensen Huang stated that AI is entering its next frontier and driving the largest infrastructure build-out in human history, emphasizing CoreWeave's expertise in AI factories and platform software.
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