Nvidia Allocates $2B to Support Debt-Stricken CoreWeave in Expanding AI Compute by 5GW

Nvidia Invests $2 Billion in CoreWeave to Accelerate AI Data Centers

Nvidia has announced a significant $2 billion investment in CoreWeave, aiming to boost the data center company’s capacity for AI computing by over 5 gigawatts before 2030.

Nvidia Strengthens Partnership with CoreWeave

As a previous investor in CoreWeave, Nvidia has acquired the company’s Class A shares at $87.20 each. This partnership aims to establish “AI factories”—data centers specialized in utilizing Nvidia’s cutting-edge technology.

Integration of Advanced Nvidia Technologies

CoreWeave plans to incorporate Nvidia’s latest innovations across its platform, including the upcoming Rubin chip architecture, Bluefield storage systems, and the new Vera CPU line.

CoreWeave Under Scrutiny Amid Debt Concerns

Despite facing criticism for its substantial debt—reportedly $18.81 billion as of September 2025—CoreWeave has reported a robust revenue of $1.36 billion in the third quarter. The company’s CEO, Michael Intrator, defends its financial model, which relies on leveraging GPUs as collateral.

A Transition to AI Services

CoreWeave has successfully transitioned from its origins in cryptocurrency mining to becoming a provider of data center services focused on AI training and inference. The company has made strategic acquisitions to enhance its technological offerings, including Weights & Biases and OpenPipe.

Expanding Partnerships and Customer Base

CoreWeave currently serves several major clients, including OpenAI, Meta, and Microsoft. The recent investment from Nvidia will also include support for acquiring land and power resources for their data centers.

Positive Market Reaction

Following the announcement of the investment, CoreWeave’s shares surged by over 15%, reflecting growing optimism in its future prospects.

Nvidia’s Ongoing Commitment to AI Development

For Nvidia, a key player in the AI sector, this investment marks another chapter in its strategy to sustain the rapid growth and innovation in artificial intelligence technology. The company continues to make numerous investments to foster the development of this emerging field.

Here are five FAQs related to Nvidia’s recent investment in CoreWeave:

FAQ 1: What is the significance of Nvidia’s $2B investment in CoreWeave?

Answer: Nvidia’s $2 billion investment aims to support CoreWeave in expanding its AI computing capacity by adding 5 gigawatts (GW) of power. This substantial financial backing not only strengthens CoreWeave’s infrastructure but also enhances Nvidia’s position in the rapidly growing AI and cloud computing markets.

FAQ 2: How will the new investment affect CoreWeave’s operations?

Answer: The investment will enable CoreWeave to significantly scale up its AI compute resources, allowing the company to handle increased demand from AI applications. This expansion will enhance their ability to offer competitive services in the cloud computing sector.

FAQ 3: What are the potential impacts of this investment on the AI industry?

Answer: By boosting CoreWeave’s computational power, Nvidia’s investment could accelerate advancements in AI technologies, enabling faster processing and more robust AI models. This could lead to innovation across various sectors, including healthcare, finance, and entertainment.

FAQ 4: Why did Nvidia choose to invest in CoreWeave specifically?

Answer: CoreWeave has established itself as a key player in providing cloud services tailored for AI workloads. Nvidia likely sees potential in CoreWeave’s capabilities and aligns with their strategy to expand the ecosystem of AI computing resources, thus enhancing the demand for Nvidia’s GPUs.

FAQ 5: What does the addition of 5GW of AI compute mean for energy consumption?

Answer: The addition of 5GW of AI compute represents a significant increase in energy demands, potentially leading to discussions around sustainable energy solutions. Both Nvidia and CoreWeave are likely to consider how to source this energy responsibly, potentially using renewable energy to mitigate environmental impacts.

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Nexus Allocates $700M Fund for India Startups, Holding Back on Full Commitment to AI

Sure! Here’s a rewritten version of the article with engaging headlines and an SEO-friendly structure.

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  <h2>Nexus Venture Partners Sets a Balanced Course with New $700 Million Fund</h2>

  <p id="speakable-summary" class="wp-block-paragraph">While many venture capital firms are fixated on AI investments, <a target="_blank" href="https://nexusvp.com/" rel="noreferrer noopener nofollow">Nexus Venture Partners</a> is strategically diversifying its portfolio with a new $700 million fund.</p>

  <h3>Diverse Investment Strategy: AI and Beyond</h3>
  <p class="wp-block-paragraph">The firm plans to not only support AI startups but also focus on India-centric ventures in consumer, fintech, and digital infrastructure sectors.</p>

  <h3>The AI Investment Landscape</h3>
  <p class="wp-block-paragraph">AI has <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-10-03/ai-is-dominating-2025-vc-investing-pulling-in-192-7-billion" rel="noreferrer noopener nofollow">captured a significant portion of global venture capital</a>, and Nexus recognizes it as a pivotal technological shift. However, the firm warns that concentrating on a single, over-hyped category poses inherent risks. Instead, India’s digital economy offers a counterbalance, characterized by rising AI adoption and diverse opportunities.</p>

  <h3>Roots in Cross-Border Innovation</h3>
  <p class="wp-block-paragraph">Nexus, headquartered in Delaware with offices in Menlo Park, Mumbai, and Bengaluru, has been a unified fund with a cohesive U.S.–India team since its inception in 2006. The firm invests in early-stage software and India-focused startups from the same capital pool.</p>

  <h3>Expanding Portfolio and Successful Exits</h3>
  <p class="wp-block-paragraph">Over the years, Nexus's cross-border software investments have encompassed a wide range—from infrastructure tools to AI startups. Notable U.S. portfolio companies include Postman, Apollo, MinIO, Giga, and Firecrawl, all of which have seen substantial adoption in developer tooling and AI infrastructure.</p>

  <p class="wp-block-paragraph">In India, their portfolio spans various sectors including consumer goods, fintech, logistics, and digital infrastructure, with prominent investments such as Zepto, Delhivery, Rapido, Turtlemint, and Infra.Market.</p>

  <h3>AI: A Key Inflection Point</h3>
  <p class="wp-block-paragraph">“AI represents a significant inflection point, and we are anchored to that,” said Jishnu Bhattacharjee, a managing partner at Nexus in the U.S. “However, we are noticing that many AI innovations are designed to enhance services for the masses.”</p>

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          <span class="inline-cta__date">October 13-15, 2026</span>
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  <h3>Commitment to Early-Stage Investments</h3>
  <p class="wp-block-paragraph">Nexus manages $3.2 billion in total capital and has invested in over 130 companies, achieving more than 30 successful exits, including several IPOs, which highlight its long-term, early-stage investment approach.</p>

  <p class="wp-block-paragraph">Managing partner Abhishek Sharma stated to TechCrunch that the firm primarily focuses on inception to seed and Series A rounds, initiating investments with checks ranging from a few hundred thousand to around $1 million.</p>

  <h3>Maintaining Fund Size for Strategic Growth</h3>
  <p class="wp-block-paragraph">With an eight-member investment team, Nexus began with a $100 million fund and has maintained a fund size of $700 million since <a target="_blank" href="https://m.economictimes.com/tech/funding/nexus-venture-partners-closes-its-largest-ever-fund-at-700-million/articleshow/98329133.cms" rel="noreferrer noopener nofollow">launching Fund VII in 2023</a>. The firm typically raises funds every 2.5 to 3 years. Bhattacharjee emphasized that maintaining the current fund size reflects their belief in its suitability for their early-stage investment strategy.</p>

  <p class="wp-block-paragraph">“Our goal is not to raise capital for the sake of it,” he noted.</p>

  <h3>India’s Promising AI Landscape</h3>
  <p class="wp-block-paragraph">Although India's AI development may <a target="_blank" href="https://techcrunch.com/2024/06/30/here-are-indias-biggest-ai-startups-based-on-how-much-money-theyve-raised/" rel="noreferrer noopener">lag behind the U.S.</a> in some areas, Nexus sees potential for the country to leap ahead in various aspects of the AI ecosystem. </p>

  <p class="wp-block-paragraph">Bhattacharjee highlighted India’s vast talent pool, increasing digital infrastructure, and the necessity for localized models to cater to the country's multiple languages and service needs. These factors are driving Indian startups to develop AI applications more rapidly, often utilizing open-source technology and emerging domestic AI infrastructure companies.</p>

  <h3>Showcasing Success: AI Innovations in India</h3>
  <p class="wp-block-paragraph">The partners at Nexus cited companies like Zepto and Neysa to exemplify the evolution of AI in India. Zepto, a quick-commerce platform, leverages AI extensively across its operations—from customer service to routing and fulfillment—highlighting how consumer businesses are becoming increasingly AI-integrated. Additionally, infrastructure firms like Neysa are emerging to address unique Indian requirements, such as sovereign AI workloads and localized data processing.</p>

  <p class="wp-block-paragraph">While Nexus didn't disclose specific fund metrics, partners affirmed that their funds have generated significant returns over the years, allowing them to sustain the current fund through returning limited partners. Their investor base spans the U.S., Europe, the Middle East, Southeast Asia, and Japan.</p>
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This restructuring improves clarity, engagement, and SEO optimization while retaining the original content’s informative essence.

Here are five frequently asked questions (FAQs) regarding Nexus’s decision to hold half of its new $700 million fund for India startups while not fully committing to AI:

FAQs

1. Why is Nexus not committing fully to AI with its new fund?

Nexus believes in a balanced approach to investment. While AI presents significant opportunities, the firm recognizes the need for diverse innovations across various sectors, particularly in the dynamic Indian startup ecosystem.

2. How much of the $700 million fund is allocated for India startups?

Nexus has allocated half of its new $700 million fund, which means approximately $350 million will specifically target startups in India. This reflects the firm’s confidence in the potential of Indian entrepreneurship.

3. What types of startups is Nexus looking to fund in India?

Nexus aims to invest in a range of sectors, including fintech, health tech, e-commerce, and more, while still considering AI-driven solutions. The focus is on startups that demonstrate strong growth potential and innovative business models.

4. What are the potential benefits of focusing on India startups for Nexus?

Investing in Indian startups allows Nexus to tap into a rapidly growing market with a vibrant tech ecosystem. India’s diverse demographic and increasing digital adoption create significant opportunities for innovation and scalability.

5. How does Nexus’s strategy compare to other investment firms focusing on AI?

While many firms are prioritizing AI, Nexus’s strategy of maintaining a balanced portfolio reflects its understanding of market dynamics. This approach allows them to mitigate risk and capitalize on various emerging trends beyond AI, ensuring a more sustainable investment strategy.

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