Corweave multi Billion Dollar Bull Flag deal till 2029 CoreWeave operates AI data centers in the U.S. and Europe, offering access to Nvidia's GPUs, which are highly sought after for training and running large AI models.
The latest order, which requires Nvidia to purchase any unsold capacity through April 13, 2032, builds on an April 2023 agreement.
The amended agreement serves as a backstop for CoreWeave, ensuring that capacity will be leveraged irrespective of the end customer, analysts at Barclays said, adding that the incremental spending by Nvidia is seen as a healthy diversification away from the company's largest customers.
"I see this as a positive for CoreWeave given concerns from investors around the company's ability to fill data center capacity beyond its two largest customers (Microsoft and OpenAI)."
In March, CoreWeave and OpenAI agreed on a five-year contract worth $11.9 billion, under which the New Jersey-based firm provides the ChatGPT maker cloud computing capacity.
The company signed an additional agreement under which OpenAI has committed to pay up to $4 billion through April 2029.
