OpenAI committed $11.9 billion over five years to CoreWeave for AI infrastructure services and compute capacity.

CoreWeave, the provider of data center technology and services for artificial intelligence companies, has signed a five-year deal with OpenAI valued at $11.9 billion. As part of the agreement, OpenAI will receive a stake in CoreWeave worth about $350 million that is tied to the company's upcoming initial public offering.

Backed by AI chipmaker Nvidia, CoreWeave is set to debut on the Nasdaq in the coming weeks. The company reported in its IPO prospectus that revenue in 2024 soared more than 700% to $1.92 billion, with more than 60% coming from Microsoft, the core investor in OpenAI. Over the past two years, CoreWeave has raised more than $12 billion from equity and debt investors, including a $1.1 billion round in May at a $19 billion valuation. In October, the company announced a $650 million credit line to expand its business and data center portfolio.

CoreWeave finished 2024 with 32 data centers, which housed more than 250,000 Nvidia graphics processing units, or GPUs. This surpassed the company's announced goals from October, when CoreWeave said it planned to have 28 data centers open by the end of the year, with 10 more planned for 2025. Beyond Microsoft, CoreWeave's customer base also includes Meta, IBM and Cohere.

According to Reuters, CoreWeave was targeting a valuation of more than $35 billion in its IPO, representing significant growth from the $19 billion valuation in its May funding round.