CoreWeave, an Nvidia-backed AI startup, recently announced an eleven-point-nine-billion-dollar, five-year contract with OpenAI. This deal comes at a crucial juncture for CoreWeave, as it prepares for its upcoming initial public offering (IPO).
Image Source: AI-generated image, licensed from Midjourney
According to CoreWeave's statement, the company will provide AI infrastructure to OpenAI, further solidifying their partnership. The contract also involves OpenAI receiving a stake in CoreWeave; CoreWeave plans to issue $350 million in shares to OpenAI privately before its IPO. Notably, CoreWeave will not receive any upfront payment for this share issuance.
OpenAI CEO Sam Altman stated, "CoreWeave is a significant addition to our infrastructure portfolio, complementing our commercial deals with Microsoft and Oracle, as well as our Stargate joint venture with SoftBank." This deal significantly bolsters CoreWeave's upcoming IPO, expected in 2025. Recently, investor demand for AI infrastructure has surged alongside the rapid increase in interest in generative AI.
Founded in 2017, CoreWeave provides data center access and high-performance chips for AI workloads, primarily relying on Nvidia's products. The company competes with cloud providers like Microsoft's Azure and Amazon's AWS. CoreWeave's clients include major tech companies such as Meta, IBM, and Microsoft. Reports suggest CoreWeave is targeting a valuation exceeding $35 billion in its upcoming IPO.
In its recent IPO filing, CoreWeave reported 2024 revenue of $1.92 billion, compared to $228.9 million in 2023. Despite significant revenue growth, the company's net loss widened from $593.7 million in 2023 to $863.4 million in 2024. Currently, approximately two-thirds of its revenue comes from Microsoft, its largest customer.
CoreWeave has raised over $14.5 billion in debt and equity financing, including a single round of over $7 billion in private debt financing last year—one of the largest financing rounds in history. Morgan Stanley, JPMorgan Chase, and Goldman Sachs are the lead underwriters for CoreWeave's upcoming IPO. CoreWeave's stock is expected to trade on the Nasdaq under the ticker symbol CRWV.
Key Highlights:
🌟 CoreWeave signs an $11.9 billion contract with OpenAI to provide AI infrastructure, strengthening their partnership.
📈 CoreWeave plans a 2025 IPO, targeting a valuation exceeding $35 billion.
💼 The company achieved $1.92 billion in revenue in 2024, but its net loss widened to $863.4 million.
