CoreWeave has signed a significant $4 billion agreement with OpenAI to provide additional cloud computing capacity, extending their partnership until 2029. This agreement was highlighted during CoreWeave's recent earnings call, though the AI company involved was not initially disclosed. Following the announcement, CoreWeave's stock saw an 8% intraday rise but ultimately closed lower due to earnings impact. Nvidia's latest 13G filing reveals it holds 24.18 million shares of CoreWeave, representing a 7% stake, higher than previously estimated at 5.2%. CoreWeave's stock rebounded by over 1% after hours.
Before its IPO, CoreWeave had secured a five-year, nearly $12 billion contract with OpenAI, granting OpenAI a significant stake in CoreWeave. Microsoft, a major supporter of OpenAI, is also a key client of CoreWeave, contributing significantly to its revenue. The expanded collaboration with OpenAI may help CoreWeave reduce its dependency on Microsoft.
CoreWeave's CEO, Michael Intrator, stated that the demand for their products is insatiable, prompting accelerated investment plans with a total expenditure of $23 billion this year. Despite a potential short-term impact on profitability, this deal underscores the explosive growth of the high-end AI computing infrastructure market, positioning CoreWeave as a key player.
