CoreWeave Inc. (CRWV) shares soared 22% to a record closing price of $80.30 on Friday, fueled by Nvidia Corp.’s announcement of a significantly larger stake in the cloud computing and AI infrastructure provider. Nvidia’s increased investment underscores growing confidence in CoreWeave’s role in the booming artificial intelligence and cloud computing sectors.

Nvidia Raises Stake to 7% in CoreWeave Following Successful IPO

Nvidia, the world’s leading chipmaker and AI technology powerhouse, disclosed owning 24.18 million shares of CoreWeave, approximately 7% of the company’s outstanding stock as of March 31. This holding was revealed in a recent SEC 13G filing, marking a substantial increase from the 5.2% stake noted in CoreWeave’s IPO prospectus. Nvidia initially supported CoreWeave’s March IPO by purchasing around 6 million shares, contributing approximately $250 million—roughly 17% of the total deal value.

CoreWeave Capitalizes on AI Computing Demand with Nvidia Technology

Based in Livingston, New Jersey, CoreWeave is rapidly expanding its cloud computing infrastructure to serve the rising demand for artificial intelligence services. The company’s growth strategy leverages Nvidia’s advanced GPUs, essential for processing intensive AI workloads and data center operations. Access to Nvidia’s cutting-edge chips enables CoreWeave to deliver high-performance AI computing capabilities, setting it apart in the competitive cloud market.

Financial Impact and Growth Outlook

Despite a recent increase in quarterly losses—from 62 cents per share last year to $1.49 per share—CoreWeave is investing heavily in capital expenditure to scale its infrastructure in line with market demand. The company’s strong backing by Nvidia and surge in share price, now more than double its $40 IPO price, highlight investor optimism about its long-term growth prospects in AI and cloud computing.

Summary

• CoreWeave shares jumped 22% after Nvidia disclosed a 7% stake.

• Nvidia acquired about 6 million shares during CoreWeave’s $250 million IPO.

• CoreWeave benefits from Nvidia’s GPU technology to power AI data centers.

• The company is scaling rapidly to meet growing artificial intelligence demand.

• Despite widening losses, CoreWeave’s stock more than doubled since IPO.

With Nvidia’s influential support and CoreWeave’s strategic positioning in AI infrastructure, the company is poised to be a major player in the evolving cloud computing and artificial intelligence ecosystem.