CoreWeave signs $12 billion deal with OpenAI

CoreWeave has signed a five-year contract worth $11.9 billion with OpenAI to provide cloud computing services. This deal includes a $350 million share issuance to OpenAI during CoreWeave's upcoming IPO, which is expected soon. CoreWeave, backed by Nvidia, aims for a valuation over $35 billion in its IPO. The company reported significant revenue growth, reaching $1.92 billion in 2024, but also experienced a widening net loss of $863.4 million. The contract comes as interest in generative AI rises, boosting demand for data centers and high-powered servers. CoreWeave competes with major cloud providers like Microsoft Azure and Amazon AWS.