TLDR
- Nvidia expands CoreWeave stake to 11.5% with fresh $2 billion investment in Class A common stock
- CoreWeave quarterly revenue surged past $1 billion, reaching $1.3 billion with more than 100% growth
- Customer contract backlog stands at $55.6 billion while the company targets 5 gigawatts of data center capacity
- Interest expenses climbed to $841.4 million in nine months, quadrupling from the previous year’s period
- Operating income dropped to $43.6 million from $211.7 million as debt costs mount
CoreWeave landed a massive endorsement from its most important partner. Nvidia invested $2 billion more into the GPU rental company, increasing its ownership position to 11.5%.
CoreWeave, Inc. Class A Common Stock, CRWV
The investment marks CoreWeave as Nvidia’s single largest portfolio holding. The funds will accelerate infrastructure development as CoreWeave races toward its 2030 goal of 5 gigawatts in AI data center capacity.
CoreWeave’s business is booming right now. Revenue topped $1.3 billion in the latest quarter, more than doubling from a year earlier.
The company solved a major pain point for AI developers. Instead of spending months and millions building data centers, customers rent Nvidia GPU access on demand.
Pricing flexibility ranges from hourly rentals to long-term contracts. Major tech companies including Microsoft and Meta are already customers.
Shares rocketed over 300% following the March 2025 public debut. The stock closed 2025 with a 79% gain after pulling back on broader AI spending concerns.
Deep Partnership With the Market Leader
CoreWeave’s entire operation centers on Nvidia hardware. The GPUs power AI model training and inference workloads that demand massive computing resources.
Nvidia’s chips maintain their performance edge over competing offerings. CoreWeave positioned itself as the easiest way to access that technology at scale.
The relationship includes financial guarantees most companies never receive. Nvidia agreed to cover unused CoreWeave capacity through April 2032, with total commitments reaching $6.3 billion.
This safety net lets CoreWeave build aggressively without revenue risk. It’s also a clear signal of Nvidia’s conviction in the business strategy.
The latest investment secures CoreWeave’s access to cutting-edge technology. The company will deploy Nvidia’s Rubin platform, Vera CPUs, and BlueField storage infrastructure.
CoreWeave’s contract backlog reached $55.6 billion as of Q3. That represents years of committed revenue from enterprise customers.
Rapid Growth Comes at a Cost
The expansion requires serious capital. CoreWeave spent $1.9 billion on capital expenditures during the third quarter alone.
Construction in progress totaled another $6.9 billion not yet reflected in official capex figures. Operating cash flow generated $1.5 billion through the first nine months of 2025.
The math requires significant borrowing even with Nvidia’s contribution. Debt financing is already impacting the income statement.
Interest expenses hit $841.4 million in the first three quarters of 2025. That’s a fourfold increase compared to the same stretch in 2024.
Operating income fell sharply to $43.6 million from $211.7 million year-over-year. Rising interest and depreciation expenses are squeezing margins as the business scales.
Build Delays Create Revenue Risks
Execution challenges could derail growth projections. CoreWeave generates revenue only from completed and operational data center capacity.
One developer experienced construction delays after the third quarter report. These setbacks threaten the aggressive 2030 buildout timeline.
The stock currently trades at $93.19 with a market capitalization around $46 billion. The 52-week trading range extends from $33.52 to $187.00.
CoreWeave maintains a gross margin of 49.23%. Converting that to sustainable net income remains difficult while servicing mounting debt obligations.
Nvidia generated $77 billion in free cash flow over the past twelve months. That war chest gives it plenty of ammunition to continue supporting CoreWeave’s infrastructure plans.
