Saturday, October 25, 2025

Latest

OpenAI Signs $11.9 Billion Deal with CoreWeave

OpenAI struck a five-year, $11.9 billion agreement with cloud provider CoreWeave, taking a direct $350 million equity stake and possibly deepening tensions with its biggest backer, Microsoft (Nasdaq: MSFT), in what TechCrunch described as a “grandmaster-level chess move.”

“CoreWeave is an important addition to OpenAI’s infrastructure portfolio, complementing our commercial deals with Microsoft and Oracle, and our joint venture with SoftBank on Stargate,” OpenAI CEO Sam Altman said in a statement.

But also, Microsoft is CoreWeave’s largest customer, with the company accounting for 62% of the New Jersey-based AI startup’s $1.9 billion revenue in 2024. Thus, this arrangement makes OpenAI both customer and partial owner of a company that Microsoft relies on for its AI infrastructure.

The deal also requires CoreWeave “to provide dedicated compute capacity for OpenAI’s model training and services.” Altman may have pulled a fast one.

Microsoft invested billions in OpenAI and receives a portion of OpenAI’s revenue, but the relationship has deteriorated as both companies increasingly compete for enterprise customers. In January, OpenAI ended Microsoft’s exclusivity as its cloud provider through the Stargate AI infrastructure deal with SoftBank and Oracle.

Read: Tech Titans Commit $500 Billion To Trump For AI Expansion, But Musk Is Not Convinced

Microsoft has responded by developing its own competing AI “reasoning” models under the MAI family and hiring Altman’s rival, Mustafa Suleyman, to lead its AI division.

Altman complained last week that OpenAI is “out of GPUs,” a problem this deal helps address while potentially complicating Microsoft’s relationship with a critical supplier.

CoreWeave, which operates 32 data centers with over 250,000 Nvidia GPUs, filed for an IPO last week seeking to raise more than $4 billion. The OpenAI deal strengthens its position by diversifying its customer base before going public.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

Goldman Sachs Questions the Economic Payoff of Generative AI

The anticipated economic benefits of generative AI investments are under significant scrutiny, according to the...

Tuesday, July 9, 2024, 08:57:35 AM

ChatGPT Has Brought Us Closer To Tech That Allows You To Talk To Dead Loved Ones In The Metaverse

Artur Sychov, the founder of top metaverse company Somnium Space, recently told Vice that advancements...

Thursday, February 9, 2023, 07:31:00 AM

Shopify Employee Breaks NDA To Reveal Firm Quietly Replacing Laid Off Workers With AI

In a Twitter thread, a Shopify (TSX: SHOP) employee has broken their non-disclosure agreement (NDA)...

Thursday, July 20, 2023, 10:30:28 AM

From Missiles To Malware: Microsoft Bares Defending Ukraine In Cyber War Against Russia

While the ongoing conflict between Russia and Ukraine has claimed many lives and properties on...

Thursday, July 4, 2024, 12:57:00 PM

This New Video-Based AI-Powered Tool Lets You ‘Speak’ In Another Language

HeyGen, a generative AI video program, has unveiled a new feature that allows users to...

Wednesday, September 13, 2023, 12:46:00 PM