Coreweave stocks jumps when opening $ 6.3 billion with Nvidia

Buiss On Monday, shares jumped up to 8% after cloud infrastructure supplier for artificial intelligence opened an order worth at least $ 6.3 billion Nvidia.

According to the terms of the agreement, Nvidia “is obliged to purchase residual unsold” in April 2032, said Coreweave supply. The company said it plans to include a copy of the full agreement along with financial results in the third quarter.

Coreweave is already largely conducting hundreds of thousands of Nvidia graphic divisions (GPU), which are then rented by customers. The company that went publicly In March there is questionna worker As of June 30, NVIDIA, the CoreWeave Class Owner.

Mike Intrater, CEO Coreweave, said in March interview He has “not enough” to appeal to Nvidia Jensen Huang CEO.

In its IPO Coreweave Avenue warned that it depends on a limited number of suppliers, and all graphic processors in their infrastructure at the time came from Nvidia. Cloud suppliers Amazon. Google. Microsoft and Oracle Also hope for Nvidia for chips to help them meet the demand for II. Google and Microsoft have turned to Coreweave for extra power.

In August Coreweaave reported $ 1.21 billion Profit in the second quarterby 207% per year. The company continues to lose money by recording a net loss of $ 290.5 million.

While Coreweave is greatly dependent on NVIDIA chips for its business, the company has other major customers when it comes to calculating power. Earlier this year Coreweaave provided contract with Openai which is worth 11.9 billion dollars More than five years.

Coreweave’s shares have tripled since Monday from the moment of their IPO, and the company is estimated at more than $ 58 billion.

See: CEO Coreweaave: Companies Building AI cannot get enough calculations, this is the back wind for us