CoreWeave has secured a US$6.3 billion initial order with Nvidia, which will require the chipmaker to purchase any unsold cloud computing capacity from CoreWeave through April 2032.

CoreWeave, a US- and Europe-based data center operator, provides cloud access to Nvidia GPUs used for AI workloads.

The new agreement updates a previous deal made in April 2023.

Analysts at Barclays said the arrangement helps diversify Nvidia’s spending away from its largest customers.

CoreWeave also has a five-year, US$11.9 billion contract with OpenAI to supply cloud capacity, alongside a separate agreement for up to US$4 billion through April 2029.

The company reported a sharp rise in demand for its cloud services in Q2, but operating expenses reached US$1.2 billion as it scaled to meet AI demand.

🔗 Source: Reuters

Recent CoreWeave developments