Overview
- Backblaze signed a five-year, $335 million agreement to supply multi-exabyte, HDD-based capacity into CoreWeave’s AI Object Storage, a deal announced on Tuesday.
- The contract annualizes to about $67 million per year, a sum that meaningfully boosts Backblaze’s revenue visibility versus its recent run rate.
- CoreWeave users already on its AI Object Storage gain immediate access to the new, lower-cost tiers provided by Backblaze with no code changes required.
- Markets reacted sharply: Backblaze shares jumped intraday on the announcement while CoreWeave stock declined on the same day.
- The deal reflects a broader industry pattern of tiered AI storage that keeps hot data on fast local storage and shifts colder, long-term datasets to cheaper HDD layers, but it also raises concentration risk because Backblaze will depend heavily on a single large customer.