Backblaze (BLZE) Stock Jumps 20% on $335M CoreWeave Deal

TLDR

• Backblaze stock jumped 20% Tuesday after announcing a five-year, $335 million storage deal with CoreWeave
• The multi-exabyte agreement sees Backblaze providing storage capacity for parts of CoreWeave’s managed storage infrastructure
• Backblaze’s HDD-based storage will support CoreWeave AI Object Storage’s performance tiers
• Existing CoreWeave AI Object Storage customers get access to new service tiers with no code changes required
• CoreWeave counts 9 of the top 10 AI model providers among its customers

Backblaze (BLZE) stock jumped 20% on Tuesday after the cloud storage company announced a five-year, $335 million data storage agreement with CoreWeave (CRWV).

Backblaze, Inc., BLZE

The deal is structured as a multi-exabyte agreement, meaning the volume of data involved runs into millions of terabytes. Backblaze will supply cost-efficient storage capacity to support portions of CoreWeave’s managed storage infrastructure.

The partnership centers on HDD-based storage tiers within CoreWeave AI Object Storage. Backblaze’s technology will help optimize how data is placed across performance tiers, freeing up high-performance storage for the heaviest AI workloads.

One practical benefit for CoreWeave’s existing customers: those already using CoreWeave AI Object Storage with its patented LOTA distributed cache will get access to new service tiers immediately, with no code modifications needed.

What the Deal Covers

The storage infrastructure is built to support multiple stages of the AI lifecycle. That includes model training, inference, checkpointing, data preparation, model outputs, and retrieval-augmented generation (RAG).

CoreWeave VP Nick Hoover pointed to Backblaze’s track record in handling complex HDD-based infrastructure at scale as a key reason for the partnership.

Backblaze currently serves more than 100,000 customers worldwide and has built its platform around large-scale, cost-efficient storage for enterprise and data-intensive use cases.

CoreWeave’s Position

CoreWeave’s AI cloud platform covers infrastructure, technology, tools, and services. Its customer base includes leading AI model developers, enterprises, and research organizations.

The company counts 9 of the top 10 AI model providers as customers — a figure that gives some context to the scale of storage demand this deal is designed to help meet.

CoreWeave (CRWV) stock moved in the opposite direction Tuesday, falling 5.65% on the day.

BLZE was down 0.85% in later trading after the initial surge, but the 20% intraday move marked one of the stock’s sharpest single-day gains in recent memory.

The five-year term of the agreement runs through approximately 2031, locking in a long-term revenue stream for Backblaze.

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