CoreWeave Stock Is Rising After Hours: What's Driving The Action?

CoreWeave Inc CRWV shares are climbing in extended trading Wednesday following a report that the company is set to benefit from Alphabet Inc’s GOOGGOOGL deal with OpenAI.

What To Know: CoreWeave is set to provide computing capacity to Google’s cloud unit, which Alphabet will sell to OpenAI as part of a recent deal between the two companies, Reuters reported on Wednesday.

Sources familiar with the matter reportedly said the arrangement is aimed at meeting rising demand for AI services such as ChatGPT. Google is also expected to provide some of its own computing resources to the Sam Altman-led company.

CoreWeave already has a $11.9 billion contract with OpenAI to provide computing capacity over five years. The company said in a regulatory filing last month that OpenAI committed to pay the company up to an additional $4 billion through April 2029 related to the agreement.

CoreWeave made its public debut in March in an IPO at $40 per share. Despite stumbling out of the gates, shares have soared in recent months as the rise of generative AI and large language models continues to fuel incredible demand for high-performance computing infrastructure.

CoreWeave reported 420% revenue growth in the first quarter and ended the period with a revenue backlog of $25.9 billion. 

CRWV Price Action: CoreWeave shares were up 3.21% in after-hours, trading at $154.51 at the time of publication on Wednesday, according to Benzinga Pro.

Read Next:

• Oracle Q4 Earnings: Revenue, EPS Beat Estimates, Cloud Infrastructure Growth Expected To Accelerate With Demand ‘Skyrocketing’
• Saudi Arabia Taps AMD, Cisco For Cloud Project: Report

Photo: PJ McDonnell/Shutterstock.