OpenAI has signed a five-year, $11.9 billion agreement with the GPU-heavy cloud service provider CoreWeave, according to Reuters.

According to the sources, OpenAI will receive $350 million in equity in CoreWeave as part of the agreement.

The private allocation is purportedly distinct from CoreWeave’s forthcoming initial public offering.

CoreWeave submitted an application to become a public company last week; however, it has not yet determined the price or date of its initial public offering.

This agreement is so remarkable that it is a win for both companies, in addition to the billions of dollars involved. Prior to this agreement, Microsoft was CoreWeave’s largest customer.

CoreWeave’s revenue in 2024 increased to an astonishing $1.9 billion, a nearly eightfold increase from $228.9 million in 2023, with Microsoft accounting for 62% of the company’s revenue.

According to the company, CoreWeave operates an AI-specific cloud service with a network of 32 data centers that operated over 250,000 Nvidia GPUs as of the end of 2024. Nvidia, which holds a 6% stake in the company, provides support.

CoreWeave has since incorporated additional GPUs, such as Nvidia’s most recent product, Blackwell, which facilitates AI reasoning, according to the company.

CoreWeave’s aspirations to raise $4 billion or more in its IPO may have been dampened by its dependence on a single customer, which is typically a source of concern for IPO investors.

CoreWeave’s investors should be satisfied with the acquisition of OpenAI as a direct customer in a multi-billion-dollar transaction.