The CoreWeave share price rose almost 8% during Monday's United States trade after it signed a deal under which the world’s largest company Nvidia will buy any cloud capacity not sold to customers.
Shares in the data centre operator closed US$8.51 (7.6%) higher at $120.47 on Monday (Tuesday AEST) on news of the order, which has an initial value of $6.3 billion (A$9.5 billion).
CoreWeave was valued at $58.86 billion at the closing price, although the shares settled back at $120.21 billion in after-hours trading.
In a filing with the United States Securities and Exchange Commission (SEC), CoreWeave said NVIDIA was required to purchase any residual unsold capacity until 13 April 2032, subject to some conditions.
“The agreement reflects the scale, trust, and pivotal role CoreWeave plays in accelerating AI (artificial intelligence) innovation worldwide,” a CoreWeave spokesperson was quoted in a CNBC story as saying.
This deal builds on an April 2023 agreement with NVIDIA, which supplies CoreWeave with graphic processing units (GPUs) and is a shareholder of the company.
"We see this as a positive for CoreWeave given concerns from investors around the company's ability to fill data centre capacity beyond its two largest customers (Microsoft and OpenAI),"Barclays was quoted in a Reuters story as saying.
OpenAI has committed to pay up to $4 billion until April 2029 under agreements whereby New Jersey-based CoreWeave will provide the ChatGPT maker with cloud computing capacity.
Founded in 2017 as Atlantic Crypto, CoreWeave focused on cryptocurrency mining before becoming a provider of cloud computing infrastructure services, operating AI data centres in the United States and Europe.
