Backblaze Signs $355M Deal with CoreWeave: AI Cloud Outsources Its Storage

Context

CoreWeave, the leading Nvidia GPU lessor for AI training, signed a multi-year cloud storage deal valued at $355 million with Backblaze on June 24, 2026. This partnership illustrates the strategy of specialized GPU clouds: assembling a stack through partnerships rather than vertical integration like AWS or Azure.

Data

• Contract: $355 million over several years, announced on June 24, 2026 (Data Center Dynamics)
• Backblaze (BLZE): S3-compatible object storage provider, low-cost positioning vs. AWS S3; annualized revenues ~$150 million in 2025-the contract represents over two years of current revenues
• CoreWeave: valued at ~$23 billion at its March 2025 IPO; revenue growth expected >200% YoY in 2026; debt structure >$7 billion in bonds and leases
• Storage is a major cost component in LLM training jobs, alongside compute, memory, and networking

Analysis

CoreWeave remains deliberately focused on GPU compute (Nvidia H100/GB200) and outsources storage to optimize its structural costs. Backblaze charges significantly less for storage than AWS S3 based on both providers' public pricing- a material gap at AI-scale volumes. This assembly model-network (Zayo/Telia), storage (Backblaze), compute (Nvidia)-allows specialized GPU clouds to maintain margins against hyperscalers. The deal also legitimizes Backblaze as an enterprise AI-grade provider, a segment the company has sought to penetrate since 2024.

Probability-weighted scenarios

• Accelerated Backblaze adoption (55%): Other GPU cloud players (Lambda Labs, Crusoe) follow the same storage optimization logic. BLZE becomes an AI infrastructure play with a valuation re-rating.
• Status quo (35%): Isolated contract; CoreWeave renegotiates at expiration if hyperscalers align on pricing.
• CoreWeave stress risk (10%): If CoreWeave faces a liquidity shock (documented tensions in 2025-2026), the multi-year contract is at risk. Customer concentration for Backblaze.

Portfolio implications

contenu BLZE offers indirect exposure to AI growth with a far more modest valuation than compute players. This contract reduces historical revenue concentration (cloud gaming) and lends credibility to the enterprise pivot. [/ENCADRE]

For CRWV holders, outsourcing confirms operational scalability, but the debt structure remains the number-one risk.

Risks & blind spots

CoreWeave’s dependence on Nvidia for GPU supply. Risk of repricing if hyperscalers subsidize storage to retain AI workloads. Cost pressure on CoreWeave may lead to premature renegotiation.

To monitor

Backblaze’s Q2 2026 results (August 2026). Similar contract announcements from Lambda Labs or Crusoe Energy. Evolution of CoreWeave’s debt and its structural covenant in upcoming quarterly reports.