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CoreWeave scored significant wins in the first half, with revenue and stock performance soaring.
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The company is a key partner of Nvidia and depends greatly on demand for the AI leader’s chips.
CoreWeave (NASDAQ: CRWV) delivered an exciting first half to investors. The company, known for its close relationship with artificial intelligence (AI) chip giant Nvidia (NASDAQ: NVDA), made its market debut, reported triple-digit quarterly revenue growth, and went on to gain 300%.
Investors are excited about CoreWeave as the company has seen soaring demand for its AI cloud services, and with the AI market potentially heading for $2 trillion in a few years, this momentum could continue. And just last week, this up-and-coming AI giant delivered even more fantastic news to shareholders. Let’s check it out.
First, though, let’s catch up on the CoreWeave story so far. As mentioned, the company is linked to Nvidia, and this is in two ways: CoreWeave’s main business is the leasing out of compute power in the form of Nvidia graphics processing units (GPUs), or the main chips fueling key AI tasks such as the training and inferencing of models. The company has a fleet of more than 250,000 GPUs operating in about 32 data centers, and customers can rent access to them by the hour or for a much longer period. So CoreWeave offers them a great deal of flexibility.
The second link to Nvidia is the fact that this AI powerhouse holds a 7% stake in CoreWeave. This support is a positive sign for CoreWeave and its investors because Nvidia, with its dominant position in AI, knows how to recognize potential winners. So, if Nvidia is investing in an AI company, other investors may want to give that particular company a closer look.
Now, let’s consider the fantastic news CoreWeave just delivered to shareholders. The company said it became the first to make Nvidia’s latest chip update — Blackwell Ultra — commercially available. This is in the form of the Nvidia GB300 NVL72 system built by Dell, a platform that CoreWeave says represents a “major leap” for AI reasoning and AI agent projects.
The GB300 NVL72 brings 1.5 times greater AI performance than the initial Blackwell chip — GB200 — that was launched in the fourth quarter of last year. And CoreWeave then was the first to make the Blackwell system available to customers too.
CoreWeave competes with other cloud providers such as Amazon‘s Amazon Web Services and Microsoft Azure, and those companies have both hefty resources and a broad customer base — and they, too, offer Nvidia products and services. But, what could help CoreWeave stand out over time is this first access to Nvidia products and the fact that CoreWeave specializes in AI workloads. So, CoreWeave being first to launch Blackwell and Blackwell Ultra is key because it’s establishing itself as the place for customers to go if they aim to gain immediate access to Nvidia’s latest innovations.
