This strategic partnership aims to enhance OpenAI's capabilities in cloud computing, allowing the company to diversify its resources and reduce reliance on Microsoft, its largest partner.

CoreWeave has secured an $11.9 billion contract with OpenAI, effective for five years, which includes a stake in the cloud computing provider as OpenAI prepares for its initial public offering (IPO).

Founded in 2017 and based in Livingston, New Jersey, CoreWeave specializes in providing cloud-based GPU infrastructure to AI developers and has gained recognition as one of TIME100's most influential companies.

In its recent IPO filing, CoreWeave reported a remarkable revenue increase to $1.92 billion for 2024, up from $228.9 million the previous year, although it also faced a significant net loss of $863.4 million.

Morgan Stanley, JPMorgan Chase, and Goldman Sachs are leading the underwriting for CoreWeave's IPO, which is expected to debut on Nasdaq under the ticker symbol CRWV.

CoreWeave is preparing for its public debut on the Nasdaq in the coming weeks, with plans to raise $4 billion and lead the U.S. IPO market in 2025.

This contract with OpenAI is expected to significantly boost CoreWeave's market position ahead of its IPO, enhancing its visibility and potential growth.

OpenAI's CEO, Sam Altman, has emphasized the necessity for more GPU resources, indicating that they are currently 'out of GPUs' and highlighting the importance of CoreWeave's dedicated compute capacity.

Altman described CoreWeave as a vital addition to OpenAI's infrastructure, complementing existing partnerships with Microsoft and Oracle.

Despite the promising partnership, challenges remain in integrating AI with blockchain technologies, particularly regarding scalability and processing power.

The company has raised over $12 billion in total funding over the past two years, including a $1.1 billion investment in May at a valuation of $19 billion.

Initially established for crypto mining, CoreWeave has transformed into an AI powerhouse, with its founders having cashed out $488 million in shares prior to the IPO.