CoreWeave received a $6.3 billion order from Nvidia, with its stock price surging more than 7%.

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CoreWeave disclosed that it has received at least $6.3 billion in orders from Nvidia, based on an agreement reached between the two parties in 2023.

On September 15, CoreWeave stated in a filing that under the terms of the agreement, Nvidia is obligated to purchase CoreWeave’s remaining unsold computing capacity through April 2032. CoreWeave said it will disclose the full copy of the agreement when it releases its third-quarter financial report.

According to media reports, a CoreWeave spokesperson said in an email:

The agreement reflects the scale, trust, and critical role CoreWeave plays in accelerating global AI innovation.

Since March this year, CoreWeave's share price soared by as much as 390% from its IPO price of $40 to $187, then sharply retreated, once dipping below $90. On Monday, the stock rose more than 8.4% intraday and finally closed up 7.6%, with the company's market value approaching $59 billion.

Nvidia Plays a Dual Role

CoreWeave’s business model heavily relies on Nvidia. It purchases hundreds of thousands of Nvidia GPUs and then leases their computing capacity to customers.

This dependency was listed as a risk factor in its IPO prospectus; at the time, all the GPUs in its infrastructure came from Nvidia.

Meanwhile, Nvidia is also an early backer of CoreWeave. As of June 30, Nvidia held about 7% of CoreWeave’s Class A shares. This close partnership is also reflected in the interactions at the executive level.

In an interview in March, CoreWeave CEO Mike Intrator once said that he was “never shy about reaching out” to Nvidia CEO Jensen Huang.

This deep bond has made the two companies community of interest in the fast-growing AI computing power market.

Rapid Business Growth Yet Still Loss-Making

Despite CoreWeave's heavy reliance on Nvidia chips, it already has a huge customer base in the computing power leasing market.

Earlier this year, CoreWeave reached a five-year contract with OpenAI worth up to $11.9 billion.

In addition, cloud giants including Google and Microsoft have also turned to CoreWeave to seek additional computing power capacity to meet their own growing AI needs.

Robust market demand has driven explosive growth in the company's revenue.

According to disclosures, CoreWeave’s revenue reached $1.21 billion in the second quarter of this year, up 207% year-on-year. However, the company is still in a loss-making position, with a net loss of $290.5 million in the same period.

For investors, this long-term order from Nvidia has to some extent alleviated concerns about the stability of the company’s future revenues, and proved its irreplaceable position in the AI infrastructure field.

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