CoreWeave and OpenAI Forge $11.9 Billion Alliance to Power the Future of AI

CoreWeave, an AI cloud computing provider, has reportedly secured a five-year contract valued at $11.9 billion with OpenAI. This strategic deal signifies a deepening collaboration between the two tech firms in the sphere of artificial intelligence.

Under the terms of the agreement, CoreWeave will supply computing power essential for the training and deployment of AI models for OpenAI. In addition, OpenAI will acquire shares worth approximately $350 million in CoreWeave, making it a shareholder. CoreWeave, however, will not gain any direct financial benefit from this stock issuance.

Michael Intrator, co-founder and CEO of CoreWeave, emphasized the company's commitment to providing high-performance infrastructure services to support AI innovation. The partnership underscores CoreWeave's capacity to meet the advanced demands of leading AI labs globally.

OpenAI CEO Sam Altman highlighted the importance of reliable computing power for advanced AI systems, stating that the collaboration with CoreWeave enhances OpenAI's infrastructure. This partnership complements existing commercial relationships OpenAI holds with giants like Microsoft and Oracle, further enriching its technology resources.

Founded in 2017, CoreWeave has rapidly grown, primarily using Nvidia GPUs to offer cloud-based computing that supports machine learning and deep learning tasks. As AI computing demand has surged since 2020, CoreWeave's revenue for 2024 reached $1.9 billion, although it continues to face financial losses due to significant investments in AI infrastructure.

This major contract with OpenAI marks a pivotal milestone as CoreWeave prepares for its initial public offering (IPO) and positions itself as a key player in the AI infrastructure sector. Through this partnership, both companies are poised to explore new frontiers in AI technology, driving further innovations and industry growth.