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CoreWeave, Nvidia Sign US$6.3 Billion Cloud Computing Capacity Order
Nvidia's commitment to buy all unsold cloud capacity until 2032 secures CoreWeave's financial stability amid growing AI demand, analysts say.
- CoreWeave announced a $6.3 billion agreement with Nvidia on Monday, obliging Nvidia to buy any unused cloud capacity through April 13, 2032.
- The deal builds on CoreWeave's reliance on Nvidia GPUs and an earlier April 2023 contract, addressing demand fluctuations in AI computing capacity.
- Founded in 2017 and having gone public in March, CoreWeave generated $1.21 billion in revenue during the second quarter but posted a net loss of $290.5 million as its rapid expansion drove up expenses.
- Nvidia owned 24.3 million CoreWeave shares worth about $3.96 billion at Q2's end, while CoreWeave's stock surged 8% on the new deal amid short-selling reports questioning its valuation.
- The agreement secures CoreWeave's revenue base and ensures Nvidia's access to vital GPU resources amid strong AI demand, reducing CoreWeave's risk of idle capacity.
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Key Points CoreWeave (CRWV) is jumping 5% this morning on a $6.3B Nvidia deal guaranteeing unsold capacity. Naysayers piled onto CRWV in August during its plunge after a post-IPO rocket ride Did CoreWeave’s critics bet wrong on the stock and miss out on a 43% rebound? Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully…
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Read Full ArticleCoreWeave, Nvidia sign US$6.3 billion cloud computing capacity order
CoreWeave has signed a US$6.3 billion initial order with Nvidia, the data center operator said on Monday, in a deal that guarantees that the AI chipmaker will purchase any cloud capacity not sold to customers.
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Total News Sources15
Leaning Left3Leaning Right0Center7Last UpdatedBias Distribution70% Center
Bias Distribution
- 70% of the sources are Center
70% Center
L 30%
C 70%
Factuality
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