CoreWeave, OpenAI Sign $11.9B AI Infrastructure Deal Before IPO

CoreWeave, a fast-growing AI infrastructure startup backed by Nvidia, has signed a five-year, $11.9 billion contract with OpenAI, solidifying its position ahead of its anticipated public listing.

Under the agreement, CoreWeave will supply OpenAI with AI infrastructure, expanding OpenAI’s network beyond its existing partnerships with Microsoft, Oracle, and SoftBank. In return, OpenAI will receive $350 million worth of CoreWeave shares through a private placement at the time of the IPO, though CoreWeave will not receive direct proceeds from the share issue.

“CoreWeave is an important addition to OpenAI's infrastructure portfolio,” said OpenAI CEO Sam Altman, highlighting the deal’s strategic fit alongside existing commercial relationships.

IPO and Market Impact

CoreWeave’s initial public offering, expected to headline the U.S. IPO calendar in 2025, is projected to value the company at over $35 billion. The partnership with OpenAI is seen as a significant boost, as investor interest in generative AI and related infrastructure continues to surge.

The startup reported $1.92 billion in revenue for 2024, a sharp rise from $228.9 million the previous year, though its net loss widened to $863.4 million. Microsoft accounted for about two-thirds of CoreWeave’s revenue, underscoring the company's reliance on major tech clients including Meta, IBM, and Microsoft itself.

Founded in 2017, CoreWeave specializes in providing access to high-powered chips and data centers for AI workloads, competing with cloud giants like Microsoft Azure and Amazon AWS.

Financial Backing and Future Outlook

CoreWeave has raised over $14.5 billion across 12 financing rounds, including a record-breaking $7 billion private debt deal led by Blackstone and Magnetar. The company’s IPO will be underwritten by Morgan Stanley, JPMorgan Chase, and Goldman Sachs, with shares set to trade on the Nasdaq under the ticker symbol CRWV.

What This Means

CoreWeave’s blockbuster deal with OpenAI not only strengthens its market position but signals broader momentum for AI infrastructure firms eyeing public markets. A successful IPO could pave the way for other AI startups, such as data center operator Switch, to pursue listings amid rising demand for generative AI capabilities.

Editor’s Note: This article was created by Alicia Shapiro, CMO of AiNews.com, with writing, image, and idea-generation support from ChatGPT, an AI assistant. However, the final perspective and editorial choices are solely Alicia Shapiro’s. Special thanks to ChatGPT for assistance with research and editorial support in crafting this article.