CoreWeave inks $11.9 billion contract with OpenAI ahead of IPO
The Hindu
CoreWeave has signed a $11.9 deal with OpenAI ahead of its highly anticipated IPO.
CoreWeave, an artificial intelligence startup backed by Nvidia, has signed a five-year contract worth $11.9 billion with OpenAI ahead of its hotly anticipated stock market launch.
As part of the pact, CoreWeave will provide AI infrastructure to OpenAI, CoreWeave said in a statement on Monday, confirming an earlier exclusive report from Reuters.
The deal will give OpenAI a stake in CoreWeave, which will issue shares worth $350 million to the ChatGPT maker through a private placement at the time of its initial public offering.
Livingston, New Jersey-based CoreWeave, which is one of the hottest AI startups in the U.S., will not receive any proceeds as part of the share issue to OpenAI.
"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.
The deal provides a major boost to CoreWeave ahead of its blockbuster share sale, which is expected to headline the U.S. IPO lineup for 2025.
The discussions with OpenAI come at a time when investor interest in generative AI is sky-rocketing. The AI boom, which has powered chipmakers such as Nvidia and other big tech firms, has driven a surge in global demand for infrastructure such as data centers and high-powered servers.
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