Photo Credit: Getty Images
CoreWeave, a leading AI data center provider backed by Nvidia, has secured a momentous five-year contract worth $11.9 billion with OpenAI. The agreement, finalized on March 10, 2025, comes at a strategic time as CoreWeave prepares for its highly anticipated initial public offering on the Nasdaq.
As part of this arrangement, OpenAI will receive equity in CoreWeave valued at approximately $350 million. This stake will be tied to CoreWeave's upcoming IPO, where the company is reportedly targeting a valuation exceeding $35 billion according to Reuters.
"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, emphasizing the strategic significance of this partnership.
The New Jersey-based startup has experienced extraordinary growth, with revenue soaring more than 700% to $1.92 billion in 2024. This remarkable expansion comes despite widening net losses, which reached $863.4 million last year, up from $593.7 million in 2023.
Microsoft remains CoreWeave's largest customer, accounting for approximately 60% of its revenue. This relationship creates an interesting dynamic considering Microsoft's significant investment in OpenAI.
CoreWeave's infrastructure currently spans 32 data centers housing over 250,000 Nvidia GPUs. This capacity exceeded the company's previously announced goals from October 2024, demonstrating their ability to scale rapidly in response to growing AI computation demands.
The AI infrastructure provider has successfully raised substantial capital, securing more than $12 billion from equity and debt investors over the past two years. This includes a $1.1 billion funding round in May that valued the company at $19 billion and a $650 million credit line announced in October to expand its data center portfolio.
CoreWeave's customer base extends beyond Microsoft and OpenAI to include other tech giants such as Meta, IBM, and Cohere, positioning it as a central player in the AI infrastructure ecosystem.
The deal highlights the explosive growth in demand for AI computing resources and data center capacity as companies race to develop and deploy increasingly sophisticated AI systems. It also represents a significant vote of confidence in CoreWeave's capabilities ahead of its public market debut.
Morgan Stanley, JPMorgan Chase, and Goldman Sachs are serving as lead underwriters for CoreWeave's upcoming IPO, where its shares will trade under the symbol "CRWV."
