NVIDIA Invests $2 Billion in AI Data Center Company Coreweave

NVIDIA is making a $2 billion stock investment in Coreweave, an AI data center company that builds its infrastructure around NVIDIA chips.

The two companies announced they're partnering to construct new AI data centers, with a stated goal of reaching five gigawatts of computing capacity. Coreweave says demand for AI infrastructure remains strong.

However, the deal has drawn skepticism from some investors who are wary of Coreweave's strategy of financing NVIDIA chip purchases through high-interest debt. NVIDIA's investment essentially puts money into a company whose business model depends on buying its products.

Details on the timeline for the new facilities or how the investment will be structured were not disclosed.