CoreWeave Strikes $11.9B Deal with OpenAI to Deliver AI Infrastructure
CoreWeave announced on March 11 that it had signed a five-year deal worth up to $11.9 billion with OpenAI, the nonprofit research company behind ChatGPT. As part of the agreement, OpenAI will invest in CoreWeave by acquiring $350 million in stock, while CoreWeave will supply AI infrastructure services.
Boost Ahead of CoreWeave’s IPO
The deal comes as CoreWeave prepares for an initial public offering (IPO). Founded in 2017 in Livingston, New Jersey, the company reported $1.9 billion in revenue in 2024, alongside a net loss of $863 million. CoreWeave specializes in cloud-based GPU infrastructure for AI developers, positioning itself as a key player in the AI industry.
Microsoft Cancellations Impacting CoreWeave
This partnership could help offset potential revenue losses from Microsoft, which had planned to invest $10 billion in CoreWeave by 2030. According to the Financial Times, Microsoft canceled some of its contracts with CoreWeave due to missed deadlines, though the company denies these claims. CoreWeave competes with major players like Amazon, Oracle, and Google, as well as smaller firms such as DataCrunch, Lambda, and Foundry.
Cloud AI Market Poised for Massive Growth
According to Fortune Business Intelligence, the cloud AI market is set to grow from $46.7 billion in 2022 to an estimated $398 billion by 2030, with a compound annual growth rate (CAGR) of 30.9%. This growth reflects the increasing demand for cloud-based AI solutions across industries.
AI and Blockchain Integration
Beyond AI infrastructure, cloud computing platforms are playing a growing role in blockchain development. One of the primary challenges in merging AI and blockchain is scalability and processing power, which cloud AI services aim to address. These integrations could significantly impact Web3 gaming and decentralized applications.
However, concerns about centralization remain a key challenge, as major cloud providers continue to dominate the industry. Despite this, CoreWeave’s partnership with OpenAI marks a significant milestone in the evolving AI and cloud computing landscape.
