CoreWeave Strikes Billion-Dollar Cloud Deal with OpenAI

CoreWeave, an AI startup supported by Nvidia, secures a five-year, $11.9 billion contract with OpenAI to deliver cloud computing services. This agreement will involve OpenAI acquiring a stake in CoreWeave, which plans to issue shares through a private placement during its upcoming IPO.

CoreWeave, a burgeoning player in the artificial intelligence domain, has inked a monumental five-year contract valued at $11.9 billion with OpenAI. The deal, on the brink of CoreWeave's anticipated IPO, will see it supply critical cloud computing services to OpenAI.

As part of the agreement, OpenAI will obtain a stake in CoreWeave. The startup plans to issue shares worth $350 million through a private placement concurrent with its initial public offering. Despite the private placement, CoreWeave won't receive any proceeds from the IPO, according to confidential sources.

Set to list its shares in New York, the specifics of CoreWeave's IPO remain uncertain, hinging on market conditions. Currently, both CoreWeave and OpenAI have withheld comments on the development.

(With inputs from agencies.)