Nvidia has sealed a $6.3 billion agreement with CoreWeave to purchase their surplus computing capacity until April 2032. This deal enables CoreWeave to ensure that its data centers remain operational during fluctuations in demand. If their servers are underbooked, Nvidia will buy the excess capacity, thereby securing a dependable source of revenue for CoreWeave.

As a result of this agreement, CoreWeave’s shares (CRWV) saw a 5% increase in early trading. Nvidia also invested heavily in CoreWeave, holding around 24.3 million shares, valued at approximately $3.96 billion as of the last quarter-end.

This strategic partnership not only provides CoreWeave with financial security but also ensures Nvidia’s continued access to cloud-based GPU resources as the demand for AI training surges. Nvidia, which already supplies CoreWeave with GPUs, aims to fortify its involvement with this cloud computing entity.

CoreWeave, established in 2017, has garnered significant attention in the tech industry, especially after going public earlier this year, marking a major tech IPO. Despite an initial surge, the stock values dropped over 50% in summer but have since rebounded by approximately 35% since Labor Day.