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CoreWeave secures $11.9B OpenAI deal ahead of IPO

CoreWeave secures $11.9B OpenAI deal ahead of IPO

Grafa2025/03/12 05:00
By: Isaac Francis
AIOLD0.00%ETH-0.98%

CoreWeave has secured a five-year, $11.9 billion deal with OpenAI to expand computing capacity for AI model training and deployment.

Announced on March 11, the agreement positions CoreWeave as a key partner in supporting OpenAI’s advanced AI systems, including ChatGPT.

As part of the deal, OpenAI will acquire $350 million in CoreWeave stock through a private placement linked to the company’s upcoming Nasdaq IPO under the ticker "CRWV."

CoreWeave aims to raise $4 billion, targeting a valuation exceeding $35 billion.

“This contract underscores CoreWeave’s proven ability to deliver reliable infrastructure services, powering AI innovations for world-leading labs,” CEO Michael Intrator stated.

“Advanced AI systems require reliable compute, and we’re excited to scale with CoreWeave to offer great services to even more users,” OpenAI CEO Sam Altman added.

The deal comes as CoreWeave seeks stability after Microsoft canceled certain contracts due to missed deadlines.

Microsoft accounted for over 60% of CoreWeave’s revenue in 2024, making this new partnership crucial for offsetting losses and boosting investor confidence.

Originally focused on Ethereum mining, CoreWeave pivoted to AI infrastructure after Ethereum’s 2022 transition to proof-of-stake.

By the end of 2024, the company operated 32 data centers with over 250,000 Nvidia GPUs, driving revenue from $229 million in 2023 to $1.92 billion in 2024.

With demand for AI computing infrastructure surging, competitors like Amason, Oracle, and Google are also expanding their cloud-based AI services.

CoreWeave’s agreement with OpenAI strengthens its position in the AI sector while setting the stage for one of the largest IPOs in recent years.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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