CoreWeave, a cloud computing startup specializing in artificial intelligence (AI) infrastructure, has signed a five-year deal with OpenAI worth $11.9 billion, according to two sources familiar with the matter.

The agreement, reported by Reuters, comes just before CoreWeave's planned initial public offering (IPO). As part of the deal, OpenAI will receive a $350 million equity stake in CoreWeave through a private placement tied to the startup’s upcoming IPO.

Founded in 2017, CoreWeave initially focused on cryptocurrency mining before shifting its business toward AI cloud computing. The company now provides AI computing services to major clients, including Microsoft OpenAI's primary investor as well as Meta, IBM, and Cohere.

CoreWeave has experienced significant growth, with its revenue in 2024 soaring over 700% to $1.92 billion. According to its IPO prospectus, more than 60% of this revenue came from Microsoft. However, the company also reported a net loss of $863.4 million last year, reflecting its aggressive investment in AI infrastructure.

The startup currently operates 32 data centers equipped with over 250,000 NVIDIA graphics processing units (GPUs), surpassing its earlier goal of 28 data centers by the end of 2024. CoreWeave plans to expand further, with 10 additional data centers expected in 2025.

Backed by AI chip giant NVIDIA, CoreWeave is targeting a valuation of more than $35 billion in its upcoming IPO. The public offering will be led by major financial institutions, including Morgan Stanley, JPMorgan Chase, and Goldman Sachs.

This $12 billion partnership solidifies CoreWeave's role as a key AI infrastructure provider and strengthens its relationship with OpenAI, highlighting the growing demand for high-performance cloud computing to support AI advancements.

PHOTO: COREWEAVE

This article was created with AI assistance.