New York, January 26, 2026, 18:10 EST — After-hours
- Shares of CoreWeave jumped 5.7% following Nvidia’s announcement of a $2 billion equity stake.
- The private placement sets new shares at $87.20 each, coming in below Monday’s trading prices.
- Traders are keeping an eye on whether the cash accelerates CoreWeave’s power and land pipeline for new AI data centers.
CoreWeave, Inc (CRWV.O) shares jumped 5.7% to $98.31 in after-hours trading Monday following Nvidia’s (NVDA.O) announcement of a $2 billion investment in the AI-centric cloud firm. Nvidia stock slipped 0.7%, closing at $186.47.
This shift is significant as the AI boom now hinges on steel, power, and real estate—not only on chips. Investors are pushing firms hard on who will finance the next surge in data centers and how quickly new capacity can be brought online.
Nvidia’s cash boost arrives amid the market wrestling with whether AI computing demand can outpace the costs, permits, and grid limits that often slow projects.
Nvidia bought in at $87.20 per share, snapping up about 23 million shares and nearly doubling its position, Reuters calculations using LSEG data show. Before the deal, Nvidia held 6.3% of CoreWeave, or 24.3 million shares, making it the third-largest shareholder. Now, it’s moved up to the second-largest. CoreWeave clarified that the fresh capital won’t be funneled into buying Nvidia processors, addressing investor concerns about “circular financing” in the AI supply chain. (Reuters)
A recent regulatory filing revealed that CoreWeave finalized the sale of 22,935,780 Class A shares through a private placement, selling directly to one buyer instead of the open market. The document also noted that the partnership expansion will be managed under a collaboration framework, dependent on further agreements. (SEC)
The companies announced they’re expanding their partnership to help CoreWeave develop over 5 gigawatts of “AI factories” — massive data centers loaded with AI chips — by 2030. CoreWeave plans to integrate Nvidia’s Vera CPUs and BlueField storage solutions, plus become an early adopter of Nvidia’s Rubin platform. Both firms are also collaborating to validate CoreWeave’s software for wider use. “AI is entering its next frontier,” Nvidia CEO Jensen Huang said. CoreWeave CEO Michael Intrator highlighted the move as proof of strong demand among its customers. (SEC)
Wall Street jumped on the bandwagon as DA Davidson raised CoreWeave to a “buy” from “neutral,” boosting the price target to $110. The move came on the back of rising demand for compute, TheFly reported. (TipRanks)
CoreWeave leases clusters of graphics processing units, or GPUs — the chips behind AI model training and execution — going head-to-head with larger cloud providers as they ramp up their AI infrastructure.
The deal still raises a key question for investors: does Nvidia-backed funding muddy the waters between genuine demand and financial backing for the ecosystem? Huang slammed the idea of calling Nvidia’s investment structure “circular,” branding it “ridiculous,” according to Business Insider’s report of his remarks to Bloomberg News. (Business Insider)
Traders will also focus on what comes next: whether land and power agreements get signed, how construction schedules unfold, and if CoreWeave will need to tap the markets again as it grows.
Nvidia’s GTC conference in San Jose, set for March 16–19, is the next major event to watch on the AI calendar. Nvidia and its partners typically unveil product road maps and deployment plans here, moves that often reshape forecasts for demand and capacity. (Nvidia)
