On Monday, March 10, 2025, OpenAI - the company behind ChatGPT - signed a five-year contract worth $11.9 billion with CoreWeave, an AI infrastructure provider, to enhance computational capacity for training its models. This agreement not only includes cash but also $350 million in CoreWeave shares related to this company's upcoming IPO. Just a few days earlier, CoreWeave also spent $1.7 billion to acquire Weights & Biases, marking a strategic move before going public. Is this a move for both companies to lead the global AI race?


Major Agreement: OpenAI and CoreWeave Join Forces

According to the contract, CoreWeave will provide dedicated AI infrastructure for #OpenAI to train large language models, such as ChatGPT. In return, OpenAI receives $350 million in CoreWeave shares, tied to an expected IPO valued at $35 billion in 2025. Reuters reported that CoreWeave will not receive money from this stock issuance, meaning this is more of a strategic reward than a direct financial transaction.


OpenAI CEO Sam Altman emphasized the importance of "reliable computing power" to scale AI models. He described this agreement as a "complement" to existing commercial partnerships with Microsoft and Oracle, while also supporting the Stargate project with Japan's Softbank. For OpenAI, this is a move to diversify computational resources and reduce dependence on Microsoft - its main partner to date.


CoreWeave: From Crypto Mining to AI Giant

CoreWeave, established in 2017 as a crypto mining company, has pivoted to dedicated AI infrastructure since 2019. Currently, the company owns over 250,000 Nvidia AI GPUs, becoming one of the largest customers of this semiconductor giant, according to SEC filings submitted last week. The agreement with OpenAI is a significant step, solidifying CoreWeave's position before a $4 billion IPO on Nasdaq, with the stock code CRWV, led by Morgan Stanley, JPMorgan Chase, and Goldman Sachs.


Just a few days ago, #CoreWeave spent $1.7 billion to acquire Weights & Biases - an AI development platform - to enhance its capabilities in the AI infrastructure sector. Despite achieving revenue of $1.92 billion in fiscal year 2024 (up 737% from 2023), the company still reported a loss of $863.4 million, highlighting the financial pressure when scaling with a cash reserve of $1.4 billion.


Significance for the Crypto and AI Market

This agreement is not only important for AI but also has an indirect impact on cryptocurrency. CoreWeave was once an Ethereum mining company, and its shift towards AI shows the potential application of blockchain technology in new fields. For Binance users, where Ethereum and AI tokens like FET or RNDR are actively traded, the development of OpenAI and CoreWeave could drive ETH demand - the currency used for gas fees on the Ethereum network, where many AI models are deployed.


If CoreWeave's IPO is successful, the increased stock value could yield significant profits for OpenAI, allowing the company to further invest in AI research. This also creates a positive effect for the blockchain ecosystem, as layer-2 projects or DeFi rely on the computational power that CoreWeave provides.


Simple Explanation: What Is This Contract?

If you're not familiar with the concept, think simply: OpenAI needs "supercomputers" to teach ChatGPT to be smarter, and CoreWeave is the company providing them. They signed an $11.9 billion contract to "rent" machinery for five years, while OpenAI is also awarded additional CoreWeave shares - as a bonus if this company successfully goes public. For traders, this is noteworthy news as it relates to Ethereum and the growth potential of the AI sector.


Trader's Perspective: Opportunities from Binance

Although not directly trading CoreWeave's stock, traders on Binance can take advantage of the indirect impact. If the IPO is successful and AI demand increases, the price of ETH could benefit due to its connection with layer-2 projects or DeFi. In the short term, traders should monitor pairs like ETH/USDT or AI tokens to catch price fluctuations. However, with CoreWeave's significant loss, financial risks remain a point to consider.


The AI Race: Who Will Win?

This agreement comes amid fierce competition in AI infrastructure. OpenAI wants to escape Microsoft's shadow, while CoreWeave strengthens its position against rivals like AWS or Google Cloud. The acquisition of Weights & Biases and collaboration with OpenAI shows that CoreWeave is making a significant bet on the generative AI era, with ambitions to lead when going public.


Conclusion: A Bold Move Before the IPO

The $12 billion contract between OpenAI and CoreWeave is a strategic move, enhancing AI capabilities while preparing for CoreWeave's high-profile IPO. For Binance users, this is a signal to monitor tokens related to Ethereum and AI, as the impact could ripple through the crypto market. However, success is not guaranteed as both companies face financial pressure and fierce competition.


Risk Warning: Investing in cryptocurrency carries high risks due to price volatility and industry instability. Only invest money you are willing to lose and conduct thorough research before acting. #anhbacong