CoreWeave, an artificial intelligence startup backed by Nvidia, has secured a five-year contract worth $11.9 billion with OpenAI, paving the way for a much-anticipated stock market launch. The deal, which includes OpenAI taking a stake in CoreWeave, further solidifies the startup’s position within the rapidly expanding AI landscape.
As part of the agreement, CoreWeave will furnish AI infrastructure to OpenAI, the companies announced. CoreWeave will issue shares worth $350 million to OpenAI through a private placement timed with the initial public offering (IPO). The deal is a significant vote of confidence in the company and is expected to fuel investor excitement for the upcoming IPO.
“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,” said Sam Altman, CEO of OpenAI. This strategic partnership is seen as a major advantage for CoreWeave as it prepares to enter the public market, an IPO widely expected to be a major event in 2025.
Established in 2017, CoreWeave provides access to data centers and high-powered chips that are essential for AI workloads, the majority of which it gets from Nvidia. It competes with major cloud providers, including Microsoft Azure and Amazon Web Services.
The deal with OpenAI occurs amidst escalating investor interest in generative AI, which will bring about substantial gains in the sector. This boom is driving massive global demand for infrastructure such as data centers and high-powered servers. A successful IPO for CoreWeave could inspire other AI startups to go public.
CoreWeave’s robust financial growth is evident in its recent filings. In 2024, revenue surged to $1.92 billion, a dramatic increase from $228.9 million the previous year. However, the company’s net loss widened during the same period, from $593.7 million in 2023 to $863.4 million. The company has a significant portion of its revenue tied to one major customer: Microsoft accounts for around two-thirds of the overall revenue. CoreWeave has raised over $14.5 billion in debt and equity across multiple funding rounds.
CoreWeave is reportedly targeting a valuation exceeding $35 billion for its stock market listing. Morgan Stanley, JPMorgan Chase, and Goldman Sachs are leading the underwriting of the IPO. CoreWeave’s shares are expected to trade on the Nasdaq under the symbol CRWV.
