NVIDIA (NVDA, Financial) plans to purchase shares in CoreWeave's initial public offering (IPO) at $40 per share, amounting to a $250 million investment, according to sources from CNBC. CoreWeave, a cloud computing company leveraging advanced graphics processing and artificial intelligence technologies, originally set its IPO price range between $47 and $55 per share.
Despite the lower purchase price by NVIDIA, CoreWeave is reportedly not planning to reduce its IPO scale or resubmit documents. This strategic investment reflects NVIDIA's role as a key customer of CoreWeave, where it currently holds approximately a 6% stake.
The investment consolidates NVIDIA's position in the expanding cloud computing and AI sectors, potentially boosting CoreWeave's market standing by leveraging NVIDIA's extensive technological resources and industry influence.