CoreWeave's $11.9 Billion OpenAI Deal: A Game-Changer in AI Infrastructure

CoreWeave, backed by Nvidia, has landed a five-year, $11.9 billion contract with OpenAI to provide AI infrastructure. As part of the agreement, OpenAI will gain a stake in CoreWeave. The deal boosts CoreWeave ahead of its anticipated IPO. It's positioned as a significant player in the booming AI infrastructure market.

CoreWeave, an artificial intelligence upstart with backing from Nvidia, has struck a five-year contract with OpenAI valued at $11.9 billion, positioning itself favorably for its much-anticipated initial public offering.

OpenAI will receive a stake in CoreWeave, with shares worth $350 million, enhancing its infrastructure portfolio alongside partnerships with Microsoft and Oracle. CoreWeave, based in Livingston, New Jersey, is prominently marking its place in the US AI startup landscape without gaining financial proceeds from this share issue.

The AI sector is experiencing an investment boom, with companies like Nvidia driving up demand for data centers and servers. CoreWeave, competing with firms such as Microsoft and Amazon, expects a stock market valuation of over $35 billion, although it reported an increased net loss of $863.4 million in its latest financial year. The company's shares will be listed on Nasdaq under the symbol CRWV.

(With inputs from agencies.)