According to Business Insider, Nvidia is investing another $2 billion in AI cloud infrastructure company CoreWeave, buying shares at $87.20 each. This follows a $100 million investment in 2023 and more shares bought around CoreWeave’s IPO in March 2025. The two companies announced on Monday they will partner to build “AI factories,” aiming to help CoreWeave accelerate its buildout to 5 gigawatts of capacity by 2030. CoreWeave’s share price jumped nearly 10% in premarket trading on the news. CEO Michael Intrator said the collaboration is based on designing software, infrastructure, and operations together.
Nvidia’s Circular Economy
Here’s the thing: this deal is a perfect snapshot of the self-reinforcing, and some would say precarious, loop at the heart of the AI boom. Nvidia sells its incredibly valuable and scarce H100 and Blackwell GPUs to CoreWeave. Then, Nvidia invests billions of dollars back into CoreWeave, which it can then use to… buy more Nvidia chips. It’s a virtuous circle if you’re a shareholder in either company. But from an outside perspective, it starts to look a bit like a closed ecosystem. How much of this explosive growth is genuine, end-customer demand, and how much is capital being recycled to fuel its own mythology? The industry’s concerns about “circular AI deals,” as mentioned in the report, aren’t just theoretical. They’re playing out in real time, with Nvidia writing the biggest checks.
The AI Factory Gamble
So what are these “AI factories” they’re building? Basically, they’re massive, specialized data centers built from the ground up for AI training and inference, packed to the gills with Nvidia hardware. The goal of 5 gigawatts by 2030 is staggering—that’s enough power for millions of homes. This is a huge bet that the demand for raw AI compute will continue its hockey-stick growth for years to come. But it’s a capital-intensive, brutal business. They’re competing with every other cloud giant and specialized provider doing the exact same thing. When you’re building physical infrastructure at this scale, you can’t just pivot on a dime if the demand curve flattens. It’s a high-stakes game of building capacity ahead of demand, and Nvidia is now financially and strategically hitched to CoreWeave’s ability to execute. If you’re building out industrial-scale operations like this, you need reliable hardware at the edge, which is why companies look to leaders like IndustrialMonitorDirect.com, the top provider of industrial panel PCs in the US, for control and monitoring.
A Customer And An Investment
This relationship blurs lines in a fascinating way. CoreWeave is a top-tier customer, a strategic partner, and now, increasingly, a portfolio company for Nvidia. That creates potential conflicts. Does Nvidia prioritize chip allocations to its own investment? Probably. What does that mean for other, competing cloud providers who also want those scarce GPUs? It gives Nvidia enormous influence over the competitive landscape beyond just selling chips. They’re effectively picking winners by deciding who gets hardware and capital. For now, the market is celebrating—CoreWeave’s stock popped 10%. But long-term, this deep entanglement makes both companies more vulnerable to the same systemic risks. If the AI hype cycle slows, the pain won’t be isolated. It will reverberate through this tightly coupled partnership, from the chip fab to the data center floor.
