Why CoreWeave's NVIDIA Deal Creates a Deep Moat for AI Investors

Key Points

• The new agreement with NVIDIA provides CoreWeave with a long-term revenue backstop, significantly de-risking the company's aggressive growth strategy.
• The company is investing billions to rapidly expand its data center footprint, backed by a massive and growing backlog of committed customer contracts.
• CoreWeave's technical leadership as a premier partner for deploying advanced GPUs solidifies its essential role in the AI supply chain.

A landmark $6.3 billion deal with AI chip leader NVIDIA NASDAQ: NVDA recently sent shares of CoreWeave NASDAQ: CRWV soaring, crystallizing the company’s crucial role in the artificial intelligence (AI) boom. The market’s excitement reflects a growing understanding of a classic investment strategy: During a gold rush, the prospectors make some of the most durable profits, not by those selling the picks and shovels.

In the current AI revolution, NVIDIA is the undisputed provider of the industry’s shovels, its world-leading Graphics Processing Units (GPUs). This has positioned CoreWeave as a premier builder of the mines: the massive, power-intensive, and highly specialized data centers where those GPUs are put to work.

For investors, this dynamic presents a clear thesis for investing in the essential infrastructure that underpins the entire AI ecosystem.

How NVIDIA's Backstop Changes the Game

The relationship between CoreWeave and NVIDIA runs deeper than a simple customer-supplier dynamic. NVIDIA is a key partner and a direct shareholder, giving it a vested interest in CoreWeave's success.

This trust is built on a foundation of technical excellence, evidenced by CoreWeave being the first cloud provider to deploy NVIDIA's complete Blackwell GPU portfolio at scale. This enables NVIDIA to bring its most advanced technology to market quickly and efficiently, making CoreWeave a vital channel for its growth.

This deep alliance culminates in the new $6.3 billion agreement. The deal’s most critical component is a strategic commitment from NVIDIA to purchase any of CoreWeave's unsold cloud computing capacity through April 2032. This functions as a powerful revenue backstop, fundamentally altering the risk profile of CoreWeave's business.

This arrangement is significant for investors. It transforms the company's aggressive, multi-billion-dollar investments in new data centers from a high-risk venture into a calculated expansion with unprecedented revenue visibility.

This unique support from the industry's most crucial player de-risks CoreWeave’s growth trajectory and fortifies its financial health in a way few competitors can replicate.

The Scale of CoreWeave's Ambition

CoreWeave continues to expand its infrastructure for AI, and the company is already executing its strategy at a historic scale. The company's financial reports provide clear evidence of this massive build-out, funded by strong operational performance and successful capital raises, including $3.75 billion in senior notes issued in mid-2025.

In the second quarter of 2025 alone, CoreWeave invested a record $2.9 billion in capital expenditures. Its guidance for the full year projects a total investment between $20 billion and $23 billion.

This spending directly translates into a larger physical footprint, with the company on track to more than double its active power capacity to over 900 megawatts by the end of 2025, supported by a total of 2.2 gigawatts of contracted power.

This aggressive expansion is backed by proven, long-term customer demand. CoreWeave’s revenue grew an explosive 207% year-over-year in the second quarter to $1.21 billion, and its revenue backlog (representing contractually committed future business) has swelled to $30.1 billion.

Operationally, the company generated $753 million in Adjusted EBITDA in the quarter, showcasing strong cash flow generation from its core business. These figures confirm that as CoreWeave builds out its capability, customers are already lined up to fill the capacity.

What Investors Should Watch Now

The NVIDIA deal provides a powerful, long-term catalyst that solidifies CoreWeave's foundational role in the AI ecosystem. The company presents a compelling case for investors looking for a direct way to invest in the physical build-out of the AI revolution.

Still, the stock has experienced significant volatility following the expiration of its IPO lock-up period in mid-August, which allowed insiders and early investors to sell shares for the first time. The resulting wave of insider selling has created a supply overhang in the market.

However, a review of SEC filings shows that much of this selling was executed under pre-scheduled Rule 10b5-1 trading plans that key executives established months in advance. This context suggests the sales are part of planned financial diversification rather than a sudden reaction to current business conditions.

As the market digests these technical factors, long-term investors should focus on the company's execution of key strategic initiatives. The pending acquisition of Core Scientific, expected to close in late 2025, represents the next major step in this infrastructure-first strategy. Investors should monitor for:

• Execution: Continued progress on hitting data center "go-live" dates and power capacity targets.
• Profitability: Improvement in operating margins as cost savings from scale and redundancies from the Core Scientific acquisition are realized.
• Demand: Continued growth in the revenue backlog from new and existing customers.

While the stock navigates post-lock-up market dynamics, the underlying business has been fundamentally strengthened. This landmark agreement with NVIDIA builds a competitive moat that will be difficult for rivals to overcome, cementing CoreWeave's position for years to come.