CoreWeave (NASDAQ:CRWV) stock jumped 14% Monday after Nvidia (NASDAQ:NVDA) announced a $2 billion investment to expand their AI infrastructure partnership.

Nvidia purchased CoreWeave Class A common stock at $87.20 per share as part of a collaboration to accelerate the buildout of more than 5 gigawatts of AI factories by 2030. The investment demonstrates Nvidia’s confidence in CoreWeave’s business model and growth strategy as a cloud platform built on Nvidia infrastructure.

The expanded partnership will focus on building AI factories using Nvidia’s accelerated computing platform technology, with CoreWeave handling development and operations. Nvidia will leverage its financial strength to help CoreWeave accelerate procurement of land, power, and shell infrastructure.

The companies will also test and validate CoreWeave’s AI-native software and reference architecture, including SUNK and CoreWeave Mission Control, aiming to include these offerings within Nvidia’s reference architectures for cloud partners and enterprise customers.

CoreWeave will deploy multiple generations of Nvidia infrastructure across its platform through early adoption of Nvidia computing architectures, including the Rubin platform, Vera CPUs, and Bluefield storage systems.

“AI is entering its next frontier and driving the largest infrastructure buildout in human history,” said Jensen Huang, founder and CEO of Nvidia.

Evercore ISI analyst Amit Daryanani noted that the deal expands on the existing relationship between the companies, which includes a Master Services Agreement obligating Nvidia to purchase any unutilized capacity, worth over $6 billion through April 2032

In an interview with Bloomberg, Huang indicated that the announcement reflects confidence in CoreWeave’s growth and business model while focusing on aligning both companies’ engineering efforts and bringing capacity online.

CoreWeave CEO Mike Intrator stated that the $2 billion investment represents approximately 2% of what CoreWeave plans to spend to bring capacity online.

Daryanani estimates Nvidia will become CoreWeave’s second-largest shareholder at 12-13% of shares outstanding following the deal. The analyst maintained an Outperform rating on CoreWeave with a $160 price target.