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CoreWeave Rockets After Nvidia’s $2B Bet—What It Means for the AI Cloud Wars!

CoreWeave shares surged 5.7% to $98.31 after Nvidia disclosed a fresh $2 billion investment in the AI cloud infrastructure firm, purchasing stock at $87.20 per share. This move reflects not only Nvidia’s confidence in CoreWeave’s business model but also reinforces the broader AI data-center buildout narrative. The investment, announced alongside plans to co-develop a series of AI factories using Nvidia’s Rubin computing platform, marks a significant step in CoreWeave’s ambition to scale to 5 gigawatts of power capacity by 2030. As investor concerns had mounted in recent months over CoreWeave’s debt-fueled expansion and delays in its data-center projects, this endorsement by Nvidia helps validate the company’s long-term value proposition. While questions remain about the sustainability of its financing model and dependence on high-yield debt, a rebound in CoreWeave bond prices and this strategic partnership have eased some of those fears.