- OpenAI signs $11.9 billion, five-year infrastructure contract with CoreWeave, receiving $350 million in stock ahead of the cloud provider’s IPO.
- Deal diversifies OpenAI’s computing resources beyond Microsoft, complementing existing partnerships with Microsoft, Oracle, and SoftBank.
- CoreWeave, which began as an Ethereum mining operation in 2017, now controls over 250,000 NVIDIA AI GPUs and is planning a $35 billion public offering on Nasdaq under the symbol CRWV.
OpenAI has secured a major infrastructure partnership, signing a $11.9 billion contract with AI cloud provider CoreWeave that spans five years. The agreement, finalized Monday, includes OpenAI receiving $350 million in CoreWeave equity connected to the cloud computing company’s forthcoming initial public offering.
According to Reuters, which first reported the transaction, CoreWeave will not receive any proceeds from the share issuance to OpenAI. The deal represents a significant expansion of OpenAI’s computing capacity as it continues developing increasingly sophisticated AI models.
Sam Altman, OpenAI’s CEO, emphasized the importance of computing resources, stating that the agreement would provide “reliable compute” to continue training the company’s models at scale. Altman noted that this arrangement would complement OpenAI’s existing commercial relationships with Microsoft and Oracle, as well as its Project Stargate collaboration with Japan‘s SoftBank.
The timing proves strategic for both organizations as competition intensifies in the AI infrastructure sector. For OpenAI, the maker of ChatGPT, this represents a diversification strategy beyond its primary partnership with Microsoft. For CoreWeave, the substantial contract provides momentum ahead of its anticipated $35 billion public offering, which is expected to headline the U.S. IPO lineup for 2025 as the company seeks to raise $4 billion.
Despite holding $1.4 billion in cash reserves, CoreWeave faces financial challenges while scaling operations. The company reported impressive revenue growth of $1.92 billion for fiscal 2024—a 737% increase from 2023—but simultaneously posted an $863.4 million net loss.
The OpenAI partnership announcement follows closely on the heels of CoreWeave’s plans to acquire AI developer platform Weights & Biases through a separate $1.7 billion transaction, further consolidating its position in the AI infrastructure market.
CoreWeave‘s journey represents a remarkable pivot in the cryptocurrency-to-AI evolution. Founded in 2017 as an Ethereum mining operation, the company redirected its focus to specialized AI infrastructure in 2019. It has since amassed more than 250,000 of Nvidia‘s AI GPUs, establishing itself as one of the semiconductor giant’s largest customers.
The cloud computing provider’s upcoming Nasdaq debut will see its shares trade under the symbol CRWV, with Morgan Stanley, JPMorgan Chase, and Goldman Sachs leading the offering. This milestone marks one of the first major public offerings to emerge directly from the generative AI infrastructure boom.
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