Nvidia May Benefit from CoreWeave's Expansion Push
Nvidia may benefit from CoreWeave's new strategy to send AI engineers to manufacturing companies. CoreWeave will hire specialized engineers with backgrounds in data science and send them to assist companies in developing customized AI models for their physical products.
This approach could expand CoreWeave's total addressable market by reaching more manufacturing, robotics, and aerospace companies. It would also increase the stickiness of its ecosystem while expanding its higher-margin professional services business.
Nvidia owns about 11.5% of CoreWeave, making it one of the company's largest investors. This means that any strategy that expands CoreWeave's reach is good news for Nvidia.
CoreWeave is also one of Nvidia's largest customers, having installed over 250,000 of Nvidia's high-end GPUs in its data centers. As CoreWeave gains more manufacturing customers, it will need to buy even more GPUs from Nvidia.