CoreWeave Strikes Blockbuster AI Deal with OpenAI Ahead of IPO

CoreWeave, an AI startup backed by Nvidia, has secured an $11.9 billion cloud-computing contract with OpenAI. This deal precedes its highly anticipated IPO, giving OpenAI a stake in CoreWeave valued at $350 million. CoreWeave expects a valuation exceeding $35 billion as investor interest in AI surges.

CoreWeave, an artificial intelligence startup supported by Nvidia, has sealed a massive five-year cloud-computing contract valued at $11.9 billion with OpenAI. The agreement was confirmed by sources ahead of CoreWeave's much-anticipated initial public offering (IPO), signaling significant momentum in the AI sector.

Located in Livingston, New Jersey, CoreWeave is regarded as one of the leading AI startups in the United States. Although the company will not receive proceeds from the issued shares to OpenAI, it's anticipated that further details will be disclosed in its updated IPO prospectus. CoreWeave plans to list its shares on the New York Stock Exchange in the coming weeks, with the timeline and size subject to market variables.

The AI boom has heightened global demand for high-powered infrastructure, boosting companies like Nvidia. CoreWeave's successful IPO could set a benchmark for other AI-focused firms. Having raised over $14.5 billion in funding rounds, CoreWeave aims for a valuation exceeding $35 billion, with stocks set to trade under the symbol CRWV on Nasdaq.

(With inputs from agencies.)