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(Bloomberg) -- CoreWeave Inc. has secured a deal worth as much as $4 billion to provide additional cloud computing capacity to artificial intelligence leader OpenAI, expanding a tie-up between the two firms.
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The data center builder said in a filing Thursday that OpenAI will pay the sum through 2029. CoreWeave had disclosed a $4 billion deal on its earnings call late Wednesday but did not name the party, beyond describing it as an enterprise AI company.
Shares of CoreWeave rose as much as 8% in trading Thursday, reversing earlier declines. CoreWeave was up 69% through market close Wednesday after overcoming early jitters following its public market debut in March.
Ahead of its initial public offering, CoreWeave announced it had entered into a five-year contract with OpenAI worth nearly $12 billion. The deal also gives OpenAI a sizeable stake in CoreWeave, Bloomberg News reported at the time.
The growing OpenAI relationship could help ease CoreWeave’s reliance on Microsoft Corp., which happens to be one of the ChatGPT maker’s biggest backers. Microsoft was one of CoreWeave’s top two customers in 2024, accounting for nearly two-thirds of overall revenue, a filing with the US Securities and Exchange Commission shows.
“The demand for the product that we deliver has been truly insatiable,” Chief Executive Officer Michael Intrator said during an interview with Bloomberg TV on Thursday.
To meet that demand, CoreWeave is accelerating its investment plans. Total spending is set to reach as much as $23 billion this year, the company said.
Much of that extra capacity appears to be going toward the deployment and eventual monetization of AI. “Enterprise clients have invested enormous sums of money into the compute, into the software,” Intrator said. “Actually turning it on and having clients use it to improve the quality of their products is by far the most important trend I watch.”
That sped-up timeline may blunt profits near term. CoreWeave forecast operating income, less some items, will be $140 million to $170 million in the second quarter, compared to analyst expectations for $192 million.
(Updates with shares, CEO comments beginning in fifth paragraph.)
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