04:10 PM EDT, 03/10/2025 (MT Newswires) -- (Updates with details in second to fourth paragraphs.)

Nvidia ( NVDA )-backed (NVDA) CoreWeave signed a five-year, $11.9 billion contract with Microsoft ( MSFT )-backed (MSFT) OpenAI to provide cloud computing services ahead of its initial public offering, Reuters reported Monday, citing people familiar with the matter.

As part of this deal, OpenAI will acquire a stake in CoreWeave by receiving $350 million in shares through a private placement at the time of CoreWeave's initial public offering, the media outlet reported.

CoreWeave will reportedly not receive any direct funds from the share placement, and details of the agreement and placement are expected to appear in CoreWeave's updated IPO filing.

The timing and size of the IPO depend on market conditions, while terms of the OpenAI deal could also be adjusted, according to Reuters.

CoreWeave and OpenAI did not immediately reply to requests for a comment from MT Newswires.

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