CoreWeave (CRWV) Fuels Google-OpenAI Mega-Deal with Cutting-Edge Compute Power

Silicon Valley''s worst-kept secret is out—CoreWeave just became the backbone of AI''s biggest alliance.

When Google and OpenAI shook hands on their historic partnership, they didn''t just ink paperwork—they locked in CRWV''s bleeding-edge GPU clusters to power the next generation of AI models. The cloud computing upstart''s infrastructure now handles the dirty work for two tech titans who''d rather write checks than build data centers.

Wall Street analysts are already salivating over the contract size (undisclosed, obviously), while crypto traders pile into CRWV tokens like it''s 2021 all over again. Because nothing says ''web3 adoption'' like old-school enterprise contracts with NDAs thicker than a Bitcoin whitepaper.

This isn''t just rack space—it''s the engine room for AI''s Manhattan Project. And CoreWeave just became the only arms dealer both sides trust.

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Sources told Reuters that Google will also offer some of its own computing resources to OpenAI.

CoreWeave Poised to Gain from AI Demand

The massive demand for computing power is changing the dynamics in the tech world and fueling deals between large cloud service providers or hyperscalers like Google, Microsoft (MSFT), and Amazon (AMZN) and neocloud companies like CoreWeave.

CoreWeave, which provides customers access to Nvidia’s (NVDA) GPUs (graphics processing units), went public in March. Thanks to AI tailwinds, CRWV stock has rallied 191% over the past month. Notably, the company has secured a five-year contract worth $11.9 billion with OpenAI to provide computing capacity. Additionally, the CoreWeave and OpenAI expanded their collaboration with an additional agreement of up to $4 billion, extending through April 2029, to meet the latter’s growing demand for high-performance computing resources.

The latest arrangement with Google’s cloud unit is expected to boost CoreWeave’s prospects while diversifying its revenues and addressing concerns about revenue concentration. For context, Microsoft (MSFT) accounted for 62% of CoreWeave’s revenue in 2024.

Is CRWV Stock a Buy?

With seven Buys and five Holds, Wall Street has a Moderate Buy consensus rating on CoreWeave stock. The average CRWV stock price target of $47.42 implies a downside risk of 68.3% from current levels.

While CoreWeave Bulls stay upbeat about AI-led demand, other analysts are concerned about the stock’s lofty valuation.