CoreWeave Signs $6.5 Billion Deal with OpenAI

Recently, CoreWeave announced a $6.5 billion deal with OpenAI, expanding its existing partnership with the AI startup behind ChatGPT. This new agreement brings the total value of CoreWeave's contracts with OpenAI to $22.4 billion.

Michael Intrator, CEO of CoreWeave, expressed that this milestone reflects the trust leading innovators have in the company's capabilities, particularly in powering the most demanding AI workloads at unparalleled speeds.

Earlier this year, in March, CoreWeave secured a $11.9 billion contract to supply OpenAI with AI data centers and technology for five years. In May, the companies further extended their agreement with an additional $4 billion.

CoreWeave went public in March, earning revenue by leasing and building data centers equipped with thousands of NVIDIA GPUs. The company, backed by NVIDIA and generating substantial revenue from Microsoft—an investor in OpenAI—has been key to supporting AI-driven workloads.

According to its IPO filing, CoreWeave operates 32 data centers powered by over 250,000 NVIDIA GPUs, with expansion plans in the U.S. and parts of Europe, including the U.K., Spain, and Sweden.

CoreWeave's recent projects include the construction of a $6 billion, 100-megawatt data center in Lancaster, Pennsylvania, and several AI data center initiatives across Europe. As the demand for computing power surges across the AI industry, companies like OpenAI and NVIDIA are under increasing pressure to scale.

Earlier this week, OpenAI's CEO Sam Altman commented on the severe limitations the industry faces in terms of computational resources, noting, "The services we can provide right now are extremely limited."

In another significant move, NVIDIA recently announced a $100 billion investment to support OpenAI in building AI data centers using its advanced AI processors.