News Summary

OpenAI has entered a five-year, $11.9 billion agreement with the GPU-intensive cloud service provider CoreWeave. As part of the deal, OpenAI will receive $350 million in CoreWeave equity, separate from CoreWeave’s planned IPO. CoreWeave, which previously had Microsoft as its largest client, will now count OpenAI as a major customer. This strategic move comes as Microsoft and OpenAI, despite being partners, have seen tensions rise due to competition in AI enterprise solutions. Microsoft, which has a stake in OpenAI, has been developing its own AI models. CoreWeave, founded by former hedge fund managers, plans to use its anticipated IPO proceeds to reduce its $7.9 billion debt. The company, backed by Nvidia, operates a vast network of data centers powered by Nvidia GPUs, now used by both Microsoft and OpenAI.