CoreWeave Lands $11.9B Deal with OpenAI as IPO Looms

CoreWeave secures a $11.9 billion deal with OpenAI, strengthening its AI cloud dominance ahead of its highly anticipated IPO.

Cloud computing company CoreWeave has struck a massive $11.9 billion deal with OpenAI, securing its position as a key player in the AI infrastructure space. The five-year contract, announced just as CoreWeave prepares for an initial public offering (IPO), highlights the growing demand for specialized AI computing power.

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.

- Sam Altman, OpenAI CEO

A Strategic Move Before Going Public

The timing of this deal is no coincidence. With CoreWeave reportedly aiming for a valuation north of $35 billion in its IPO, a long-term partnership with OpenAI—one of the biggest names in artificial intelligence—adds weight to its market position.

As part of the agreement, OpenAI will also receive $350 million worth of CoreWeave shares through a private placement during the IPO, signaling a deeper alignment between the two companies.

Riding the AI Boom

CoreWeave has been on a meteoric rise. In just one year, its revenue skyrocketed from $228.9 million in 2023 to $1.92 billion in 2024. The main reason was the surging demand for AI infrastructure. The company, which started as an Ethereum mining outfit in 2017, has since pivoted to high-performance cloud computing with an impressive portfolio of partnerships with Meta, IBM, and Microsoft along the way.

But growth hasn’t come without challenges. Despite its impressive revenue surge, CoreWeave reported a net loss of $863.4 million in 2024, up from $593.7 million the previous year. Investors will be watching closely to see if the company can turn that around post-IPO.

For OpenAI, this deal ensures a steady supply of computing power for its advanced AI models, including ChatGPT. As AI applications become increasingly complex, the need for specialized cloud providers like CoreWeave is more critical than ever.

“This partnership cements CoreWeave’s role as a major player in AI infrastructure,” said a source familiar with the deal, as reported by Reuters.

CoreWeave’s blockbuster deal with OpenAI could be just the beginning. But can the company turn its massive growth into profitability? That’s the question Wall Street will be asking when it finally hits the stock market.