OpenAI has finalized a five-year agreement worth $11.9 billion with cloud computing provider CoreWeave to enhance the AI infrastructure supporting its advanced machine learning models. The deal, signed on Monday, will provide OpenAI with the computational power necessary to scale and refine its artificial intelligence capabilities, including ongoing development for ChatGPT and other AI-driven applications.
As part of the agreement, OpenAI will receive $350 million in CoreWeave shares tied to the cloud provider’s upcoming IPO. However, according to sources familiar with the deal, CoreWeave will not directly benefit from the share issuance.
OpenAI CEO Sam Altman emphasized the importance of securing “reliable compute” to sustain the company’s large-scale AI training needs.
“CoreWeave is an important addition to OpenAI’s infrastructure portfolio, complementing our commercial deals with Microsoft and Oracle, and our joint venture with SoftBank on Stargate.”
This OpenAI-CoreWeave partnership comes at a critical juncture as competition in AI infrastructure intensifies, with cloud providers vying to support the next generation of artificial intelligence models.
For OpenAI, the deal represents a strategic move to diversify its computing resources beyond Microsoft, which has been its primary cloud partner. By integrating CoreWeave’s high-performance GPU cloud services into its infrastructure, OpenAI is positioning itself to secure more reliable and scalable computing power for future AI advancements.
For CoreWeave, this agreement serves as a major credibility boost ahead of its highly anticipated public debut. The company reportedly targets a $35 billion valuation with plans to raise $4 billion in its 2025 IPO. The deal with OpenAI not only strengthens CoreWeave’s reputation as a key player in AI cloud services but also signals confidence in its technology at a time when demand for AI computing power is at an all-time high.
CoreWeave’s Evolution from Crypto Mining to AI Powerhouse
CoreWeave, originally launched in 2017 as an Ethereum mining firm, has become a major player in AI cloud computing. The company pivoted in 2019, shifting its focus toward specialized AI infrastructure. This move has positioned it as one of the leading providers of high-performance computing for artificial intelligence applications.
Since its transition, CoreWeave has amassed a fleet of over 250,000 Nvidia AI GPUs, making it one of the chipmaker’s largest clients. This extensive hardware investment has fueled its rapid growth and solidified its role as a crucial infrastructure provider for AI-driven firms like OpenAI.
CoreWeave is now preparing for its highly anticipated public debut on the Nasdaq, where it will trade under the ticker symbol CRWV. The IPO, led by financial giants Morgan Stanley, JPMorgan Chase, and Goldman Sachs, is expected to raise $4 billion, potentially valuing the company at $35 billion.
Quick Facts:
- OpenAI and CoreWeave have signed a five-year, $11.9 billion agreement to enhance AI computational infrastructure.
- OpenAI will receive $350 million in CoreWeave shares as part of the deal, aligning with CoreWeave’s upcoming IPO.
- CoreWeave reported $1.92 billion in revenue for 2024, with a net loss of $863.4 million due to expansion efforts.
