Nvidia has seen a surge in demand for its GPUs amid the AI boom, leading to a $77 billion increase in its free cash flow over the last year. The chipmaker recently invested $2 billion in CoreWeave, now owning 11.5% of the company. CoreWeave, a neocloud company, specializes in AI training and inference for tech giants like Microsoft and Meta. With ample access to Nvidia’s GPUs, CoreWeave plans to use the cash infusion to build 5 gigawatts of AI data centers by 2030, despite incurring substantial debt. Investors should consider the risks associated with CoreWeave’s debt and operational scalability before investing.

Read more at Yahoo Finance: Nvidia Just Piled $2 Billion Into This Key AI Partner. Should Investors Follow Suit?