In a major move to secure more AI computing power, OpenAI has signed a five-year, $11.9 billion agreement with CoreWeave, a cloud provider specializing in GPU-based infrastructure.
According to sources familiar with the deal, OpenAI will receive $350 million in equity as part of the agreement.
This partnership comes at a critical time for OpenAI, which has been vocal about the increasing demand for AI computing resources. With CoreWeave’s extensive network of Nvidia-powered GPUs, OpenAI aims to enhance its AI models and scale its operations effectively.
A Game-Changer for CoreWeave’s IPO
CoreWeave, backed by Nvidia, has been rapidly expanding its AI cloud services. The company recently filed for an IPO, though it has yet to announce pricing or a launch date.
Before this deal, CoreWeave’s largest customer was Microsoft, which accounted for 62% of its revenue in 2024. By securing OpenAI as a direct client, CoreWeave is diversifying its revenue sources—an important factor for potential investors.
The company operates 32 data centers, housing over 250,000 Nvidia GPUs, with plans to expand further. With OpenAI now onboard, CoreWeave’s market position is stronger than ever.
The Shifting Relationship Between OpenAI and Microsoft
While Microsoft remains OpenAI’s biggest financial backer, this new partnership signals an evolving dynamic. Microsoft has heavily invested in OpenAI, but the AI firm’s decision to work directly with CoreWeave suggests a strategic shift.
Microsoft is also developing its own AI reasoning models and has hired Mustafa Suleyman, co-founder of DeepMind, to lead its AI initiatives. Meanwhile, OpenAI is pushing ahead with independent cloud computing strategies, possibly reducing its reliance on Microsoft’s infrastructure in the long run.
CoreWeave’s Rapid Rise from Crypto to AI Powerhouse
CoreWeave started as a cryptocurrency mining operation but pivoted to AI cloud computing as demand for high-performance GPUs surged. The company has since secured major clients and investors, including Nvidia, which holds a 6% stake.
Despite its growth, CoreWeave carries significant debt—reportedly $7.9 billion. The upcoming IPO is expected to generate fresh capital, some of which may be used to reduce financial liabilities.
What’s Next?
With this deal, OpenAI gains more computing resources, CoreWeave strengthens its IPO position, and Microsoft faces new competition from its own AI partner. As the AI industry continues to evolve, this partnership could reshape the cloud computing landscape.
Key Takeaways
- OpenAI has signed a $11.9B deal with CoreWeave for cloud computing services.
- OpenAI will receive $350M in equity from CoreWeave.
- CoreWeave, backed by Nvidia, is preparing for an IPO.
- Microsoft remains a major OpenAI backer but is also developing its own AI models.
- The AI cloud computing market is becoming increasingly competitive.
