CoreWeave has inked a $11.9 billion deal with OpenAI ahead of its IPO, strengthening its role in AI infrastructure. This partnership marks a major milestone for the Nvidia-backed startup.
A Landmark Partnership Between CoreWeave and OpenAI
CoreWeave, a rapidly growing artificial intelligence startup backed by Nvidia, has signed a five-year contract worth $11.9 billion with OpenAI. This deal is a significant step for both companies, as CoreWeave will provide AI infrastructure to OpenAI, reinforcing its capabilities in artificial intelligence development. CoreWeave officially announced this agreement on Monday, confirming an exclusive Reuters report.
As part of this arrangement, OpenAI will receive a stake in CoreWeave through a private placement of shares worth $350 million. However, CoreWeave will not receive any direct proceeds from this share issuance. This collaboration enhances OpenAI’s existing partnerships, which already include major players such as Microsoft, Oracle, and SoftBank’s joint venture, Stargate.
Strengthening CoreWeave’s Position Before IPO
This agreement serves as a major boost for CoreWeave ahead of its much-anticipated initial public offering (IPO) in 2025. Investor interest in generative AI has been surging, leading to increasing demand for data centers and high-powered computing infrastructure. The AI revolution has already benefited major chipmakers such as Nvidia, and CoreWeave is now positioning itself as a key player in this fast-growing industry.
If CoreWeave’s IPO is successful, it could pave the way for other AI startups to enter the public market. For example, data center operator Switch has been considering an IPO at a valuation of around $40 billion, including debt. As investor enthusiasm continues to rise, more AI-focused companies may follow suit.
CoreWeave’s Business Model and Growth
Founded in 2017, CoreWeave specializes in providing access to advanced data centers and AI-specific computing power, primarily using Nvidia chips. The company competes with cloud service giants such as Microsoft Azure and Amazon Web Services (AWS). It has already secured major clients, including Meta, IBM, and Microsoft, further solidifying its reputation in the AI infrastructure space.
CoreWeave aims for a stock market valuation exceeding $35 billion when it goes public. The company’s financial growth has been remarkable, with revenue increasing from $228.9 million in 2023 to $1.92 billion in 2024. However, alongside its revenue growth, CoreWeave’s net loss has also widened, reaching $863.4 million in 2024, compared to $593.7 million the previous year. Notably, Microsoft accounts for roughly two-thirds of CoreWeave’s total revenue, making it the startup’s most significant customer.
A High-Stakes IPO with Major Backers
To fund its expansion, CoreWeave has raised more than $14.5 billion through multiple financing rounds, including one of the largest private debt financings in history. Last year alone, the company secured over $7 billion, with asset management firms such as Blackstone and Magnetar leading the funding efforts.
CoreWeave’s IPO is expected to be one of the most high-profile public offerings of 2025. Leading financial institutions, including Morgan Stanley, JPMorgan Chase, and Goldman Sachs, have been appointed as underwriters for the stock market debut. The company’s shares will be listed on Nasdaq under the ticker symbol CRWV, marking a major milestone in its journey to becoming a dominant force in AI infrastructure. As AI technology continues to reshape industries worldwide, CoreWeave’s partnership with OpenAI and its impending IPO could further accelerate advancements in AI-driven computing. Investors and tech enthusiasts alike will be closely watching how this deal impacts the broader AI and cloud computing landscape.
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