In a strategic power move, OpenAI has signed a five-year, $11.9 billion agreement with CoreWeave, a GPU-focused cloud service provider, Reuters reports, citing sources familiar with the deal.
As part of the agreement, OpenAI will receive $350 million in equity in CoreWeave, a private placement that remains independent of CoreWeave’s upcoming IPO.
CoreWeave recently filed to go public, though details such as pricing and a launch date are still under wraps. This deal marks a major win for both companies.
Previously, Microsoft was CoreWeave’s largest customer, accounting for a staggering 62% of CoreWeave’s revenue in 2024. The company’s revenue soared to $1.9 billion, an almost eightfold increase from $228.9 million in 2023.
CoreWeave’s AI Cloud Dominance
CoreWeave operates an AI-centric cloud service, backed by Nvidia, which owns a 6% stake in the company. As of late 2024, it ran 32 data centers and over 250,000 Nvidia GPUs. Since then, CoreWeave has expanded its infrastructure, adding Nvidia’s latest AI-focused Blackwell GPUs, optimized for AI reasoning.
For investors, CoreWeave’s previous reliance on a single major client—Microsoft—raised concerns. However, securing OpenAI as a direct multi-billion-dollar customer strengthens its position ahead of its anticipated $4 billion IPO.
This deal also underscores the evolving love-hate dynamic between OpenAI and Microsoft.
It appears OpenAI CEO Sam Altman took notice of Microsoft’s partnership with CoreWeave and decided to invest directly in the same cloud provider. Not only will OpenAI leverage CoreWeave’s infrastructure, but it will also own a stake in the company that runs it.
Although Microsoft is a key investor in OpenAI, with a deal that grants it a portion of OpenAI’s revenue, their relationship has become increasingly competitive. OpenAI is actively expanding its enterprise AI offerings, even developing high-priced AI agents that could challenge Microsoft’s dominance.
In early 2024, Microsoft ceased being OpenAI’s exclusive cloud provider as part of a broader Stargate AI infrastructure deal with SoftBank, Oracle, and others. OpenAI, in need of more computing power, has also expressed concerns about running out of GPUs, as Altman publicly admitted last week.
Meanwhile, Microsoft is developing its own AI models under the MAI family, designed to compete with OpenAI’s o1 and o3-mini models. Additionally, Microsoft recently hired Mustafa Suleyman, a former competitor of Altman, to spearhead its AI division.
CoreWeave’s Journey from Crypto to AI Giant
CoreWeave’s rise has been nothing short of dramatic. Originally launched as a crypto mining operation by former hedge fund traders, the company successfully pivoted to the AI cloud business.
Its three co-founders have already cashed out $488 million in shares, each taking home over $150 million. However, the company still holds $7.9 billion in debt.
With a successful IPO, CoreWeave plans to use some of the proceeds to pay down its massive debt load.
Ironically, these former crypto miners, once attempting to mint money with GPUs, are now figuratively accomplishing just that.
As of now, neither CoreWeave nor OpenAI have responded to requests for comment.
