On March 11, CoreWeave announced a five-year deal with OpenAI worth up to $11.9 billion, where OpenAI will become an investor, and CoreWeave will provide AI infrastructure.
Agreement with OpenAI
CoreWeave will provide AI infrastructure to OpenAI in a deal valued at up to $11.9 billion. OpenAI will become an investor in CoreWeave through $350 million worth of stock issuance.
IPO Plans
The agreement was signed ahead of CoreWeave's planned IPO. According to the company's filings, it reported $1.9 billion in revenue in 2024 despite a net loss of $863 million.
Growth of Cloud AI Market
The cloud AI market is expected to grow to $398 billion by 2030, with a compound annual growth rate of 30.9%. Cloud AI enables businesses to increase revenues through scalability, predictive analytics, and cost savings.
The deal with OpenAI could strengthen CoreWeave's position as it faces competition from giants like Amazon, Oracle, and Google. It may also provide the company with additional leverage ahead of its IPO.
