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CoreWeave, an artificial intelligence (AI) startup backed by Nvidia, has signed a massive five-year contract with OpenAI worth $11.9 billion.

This deal will provide OpenAI with AI infrastructure services ahead of CoreWeave's much-anticipated stock market debut.

The contract is expected to boost CoreWeave significantly, particularly as it prepares to launch its initial public offering (IPO), set to make headlines in 2025.

Under the agreement, CoreWeave will provide cloud computing services to OpenAI, which is known for developing technologies like ChatGPT.

In return, OpenAI will receive shares in CoreWeave worth $350 million through a private placement when the company goes public, Reuters said.

CoreWeave, however, will not benefit financially from the share issue, as the funds will go directly to OpenAI.

This deal is expected to propel CoreWeave's stock market debut, as it gains a critical partnership with one of the leading AI companies in the world.

According to sources familiar with the matter, the deal is likely to play a key role in the company's valuation, which is projected to exceed $35 billion upon its IPO. The exact timing of the listing remains uncertain, as it will depend on market conditions and final terms of the agreement with OpenAI.

OpenAI CEO Sam Altman Praises CoreWeave as Key Infrastructure Partner

Sam Altman, CEO of OpenAI, commented on the deal, saying, "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."

This partnership highlights the growing demand for infrastructure to support the rapidly expanding field of generative AI, which has already boosted companies like Nvidia and other tech giants.

Founded in 2017, CoreWeave specializes in providing high-powered data center services and chips for AI workloads, with a particular reliance on Nvidia's technology.

The company competes with other major cloud service providers such as Microsoft Azure and Amazon AWS. CoreWeave's client base includes some of the largest technology companies, including Meta, IBM, and Microsoft.

According to ThePrint, CoreWeave has seen impressive growth, with its revenue reaching $1.92 billion in 2024, a massive jump from $228.9 million the previous year.

Despite this growth, the company reported a widened net loss of $863.4 million, up from $593.7 million in 2023. A significant portion of its revenue, around two-thirds, comes from Microsoft, its largest customer.

The company has raised over $14.5 billion across 12 financing rounds, including a record-breaking $7 billion round last year. With top-tier underwriters like Morgan Stanley, JPMorgan Chase, and Goldman Sachs handling the IPO, CoreWeave's shares are expected to trade on the Nasdaq under the symbol CRWV.

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