OpenAI, the developer of ChatGPT, has signed a cloud computing service contract worth $11.9 billion (approximately 17.3561 trillion won) with the artificial intelligence (AI) startup CoreWeave, Reuters reported on the 10th.
CoreWeave is an AI startup that operates large-scale data centers using NVIDIA AI chips and focuses on leasing these resources. NVIDIA participated in the investment round in 2023; however, the specific amount of investment was not disclosed.
The contract signed with OpenAI will be maintained for five years, during which OpenAI is expected to secure some equity in CoreWeave. To this end, CoreWeave plans to issue $350 million worth of shares privately.
CoreWeave is pursuing a listing on the New York Stock Exchange and is considered one of the most anticipated candidates in the initial public offering (IPO) market this year. The contract was signed ahead of the IPO.
As a cloud service provider, CoreWeave competes with Amazon Web Services (AWS), Microsoft (MS) Azure, and Google Cloud. Major clients include Meta (formerly Facebook), IBM, and Microsoft (MS).
CoreWeave's corporate value is expected to be assessed at over $35 billion (approximately 51 trillion won) at the time of the IPO. This is nearly double the corporate value evaluated during a $1.1 billion investment in May of last year, which was assessed at $19 billion.
In 2023, CoreWeave's revenue is reported to be $1.92 billion, an increase of about eight times compared to the previous year ($228.9 million). However, the net loss also widened from $593.7 million in 2023 to $863.4 million in 2024.
Morgan Stanley, JPMorgan, and Goldman Sachs are expected to participate as joint underwriters for this IPO.