OpenAI Signs $11.9 Billion Cloud Computing Deal with CoreWeave
CoreWeave, an artificial intelligence startup backed by Nvidia, has secured a significant five-year cloud-computing contract with OpenAI. The deal, valued at $11.9 billion, comes ahead of CoreWeave's highly anticipated stock market IPO. Sources familiar with the matter revealed this information to Reuters on Monday.
Details of the Deal
As part of the agreement, OpenAI will also acquire a stake in CoreWeave. The AI startup is set to issue shares worth $350 million to OpenAI through a private placement during its IPO. While CoreWeave will not receive any proceeds from this share issuance, the deal is expected to enhance CoreWeave's position as it prepares to go public.
CoreWeave, based in Livingston, New Jersey, is among the leading AI startups in the U.S. The company, known for providing access to data centers and high-powered chips for AI workloads, has a strong customer base that includes tech giants like Meta, IBM, and Microsoft.
Impact on the Market
The cloud computing deal between OpenAI and CoreWeave signifies a significant milestone for both companies. It reflects the growing interest and investment in generative AI, driving global demand for advanced infrastructure such as data centers and high-performance servers.
CoreWeave's upcoming IPO is expected to make headlines in the U.S. market, with the company targeting a valuation of over $35 billion. The successful completion of this deal could potentially pave the way for other AI startups considering public listings.
For more information, refer to the original articles on Reuters.
