Shares of CoreWeave closed up nearly 6% on Monday after Nvidia announced it has invested $2 billion in the artificial intelligence infrastructure provider.
Nvidia purchased CoreWeave Class A common stock at $87.20 per share, according to a release, a discount from Friday's closing price of $92.98. The investment will help CoreWeave accelerate its buildout of "5 gigawatts of AI factories by 2030," the companies said.
"This deal allows us to accelerate our build, which will lead to continued diversification and reducing dependency on any particular client as we scale into this additional data center capacity," CoreWeave CEO Mike Intrator told CNBC's "Squawk on the Street" on Monday.
A gigawatt is a measure of power that's becoming an increasingly common metric for describing AI data center capacity. Five gigawatts is roughly equivalent to the annual power consumption of 4 million U.S. households, according to a CNBC analysis of data from the Energy Information Administration.
"The thing to remember is we've invested $2 billion into CoreWeave, but recognize that the amount of funding that needs to be raised yet to support that five gigawatts is really quite significant," Nvidia CEO Jensen Huang told CNBC during the interview. "We're investing a small percentage of the amount that ultimately has to go and be provided."
CoreWeave primarily generates revenue by building and renting out data centers that are full of Nvidia's graphics processing units, which are key for training models and running large AI workloads. The company, which some investors have classified as a "neocloud," has become a crucial player in an increasingly interconnected web of AI infrastructure partners.
Prior to Monday's announcement, Nvidia was already a major CoreWeave backer.