Cloud computing provider CoreWeave (CRWV) bounced back from a morning drop after securing a $6.5 billion deal with OpenAI (OPAI.PVT). This deal adds to their existing multibillion-dollar agreements, bringing the total value to $22.4 billion. CoreWeave offers GPU processing power for AI and machine learning tasks, benefiting both companies.

CoreWeave’s partnership with OpenAI continues to grow, providing additional computing power for AI models. The initial $11.9 billion agreement last March expanded with a $4 billion deal in May, now culminating in a $6.5 billion deal. CoreWeave’s CEO expressed pride in the collaboration with OpenAI, a leader in artificial intelligence advancement.

OpenAI announced plans to open three new Stargate sites in collaboration with Oracle (ORCL) worth $300 billion. Stargate aims to secure 10 gigawatts of capacity, valued at $500 billion, by year-end. Nvidia (NVDA) recently inked a deal with OpenAI, committing to build AI data centers and invest up to $100 billion.

Since its IPO in March, CoreWeave shares have surged 230%, propelled by deals with OpenAI, Nvidia, Microsoft (MSFT), and IBM (IBM). Despite Wall Street’s positive outlook, skeptics raise concerns about customer concentration, anticipating CoreWeave’s reliance on Nvidia and OpenAI. Hedgeye Risk Management predicts these two entities will become CoreWeave’s main customers by 2027.

Read more at Yahoo Finance: CoreWeave strikes $6.5 billion deal with OpenAI to power next-gen AI models