OpenAI backs cloud service provider CoreWeave with $12bn investment to spite Microsoft  

American artificial intelligence research organisation OpenAI has backed cloud service provider CoreWeave with $12 billion in investment to spite Microsoft.

Reports say OpenAI, owned by Sam Altman, has signed a five-year, $11.9 billion deal with CoreWeave, a company for which Microsoft accounted for 62% of its revenue in 2024.

According to individuals who spoke to Reuters, the deal entails OpenAI acquiring $350 million worth of CoreWeave stock; the private placement is reportedly distinct from CoreWeave’s anticipated initial public offering.

READ ALSO: Sam Altman rejects Elon Musk-led $97.4bn bid to acquire OpenAI

The action was taken as OpenAI seeks more innovative ways to become less dependent on its largest partner, Microsoft, for its computational requirements.

Last week, it was also revealed that Microsoft had canceled a proposed agreement with CoreWeave due to the cloud computing provider’s delivery problems.

But OpenAI’s recent $11.9 billion deal fills that gap and may cause it to surpass Microsoft, which contributed significantly to CoreWeave’s earnings in the previous year.

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