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(Bloomberg) — CoreWeave Inc. shares surged 22% to a record high on Friday after Nvidia Corp. reported a larger-than-anticipated stake in the cloud-computing provider.
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Nvidia, the world’s most valuable chipmaker, disclosed a holding of 24.18 million shares, or about 7% of outstanding stock, as of March 31. That stake, included in a 13G filing on Thursday, compared with a 5.2% figure in CoreWeave’s prospectus.
The amount shows how Nvidia supported CoreWeave’s late-March initial public offering, acquiring about 6 million shares to add to its existing holding. A representative for Santa Clara, California-based Nvidia declined to comment.
Nvidia, which has fast become one of the most influential companies in Silicon Valley, anchored the IPO with an order of about $250 million, a person with knowledge of the matter told Bloomberg News at the time. That was roughly 17% of the deal, before the over-allotment option.
Like Nvidia, CoreWeave has benefited from the surge in spending on artificial intelligence computing. The Livingston, New Jersey-based company is accelerating capital spending to meet demand for its services, but that’s increasing its red ink. Losses widened to $1.49 a share last quarter, compared with 62 cents a year earlier.
On Friday, the shares jumped to $80.30. That’s more than double the $40 IPO price from March.
In addition to backing CoreWeave, Nvidia provides the crucial components that let the data center provider handle AI traffic. Access to this limited supply of Nvidia chips means that CoreWeave is able to offer the most advanced capabilities for the creation and running of AI services.
—With assistance from Zachary Fleming and Ian King.
(Updates shares starting in first paragraph.)
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