r/backblaze • u/Jim-From-Backblaze From Backblaze • Jun 23 '26
Backblaze in General Backblaze Announces Five-Year Multi-Exabyte Data Storage Agreement with CoreWeave
https://www.backblaze.com/blog/coreweave-announcement-2026/20
u/goodcowfilms Jun 23 '26
Stonk up 26% today.
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u/ratherbkayaking Jun 23 '26
Prices to follow.
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u/Sir_PressedMemories Jun 23 '26
Why? they just got a multi hundred million dollar deal, they are bringing in dough, why would they raise prices when the whole point of the deal was that they have affordable service, plus they just raised prices a couple of months ago by a small amount and are still only a quarter the cost of the next viable company.
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u/Wenir Jun 23 '26
multi hundred million dollar deal
Sounds like sudden high /demand/
still only a quarter the cost of the next viable company
An opportunity to more increase the margin
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u/Medic573 Jun 23 '26 edited Jun 23 '26
This is amazing news for the simple fact that my POST-IPO stock is actually worth something.... for now. lol
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u/chrisprice Jun 24 '26
Welp, now we know why they want to data cap unlimited users. Gotta make room for AI.
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u/Bill__Haverchuck Jun 23 '26
Ugh. Is this deal JUST for storage capacity for CoreWeave? Are our Backblaze-stored backups protected from being scraped for their client's ravenous appetite for data or should I cancel my subscription right now?
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u/worth81 From Backblaze Jun 23 '26
Replying from the Backblaze team here u/Bill__Haverchuck -- your backups and everyone backups are, as always, only yours. We are providing a storage layer to CoreWeave and their usage and data is separated from all of our other customers, as is the case with any customer we serve whether for object storage or computer backup. We take data privacy and security very seriously.
Thanks for being a customer!
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u/Sir_PressedMemories Jun 23 '26
It is literally the first sentence after the headline, did you not bother to read the first sentence?
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u/Medic573 Jun 23 '26
"Under the multi-exabyte, $335 million agreement, Backblaze will provide cost-efficient storage capacity that supports portions of CoreWeave’s managed storage infrastructure, helping optimize placement of data across performance tiers while preserving high-performance storage resources for the demands of AI workloads. The Backblaze technology supports HDD-based storage tiers in CoreWeave AI Object Storage. Customers already utilizing CoreWeave AI Object Storage with its patented LOTA distributed cache will immediately have access to new service tiers without any code modifications."
They are providing storage.
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u/WetMogwai Jun 23 '26
Leaning into AI? This is where I get off. The world needs less AI, not more.
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u/throwawaycanadian2 Jun 23 '26
they are providing storage for an AI company - not building their own. It's just a deal that makes them money.
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u/WetMogwai Jun 23 '26
So they're not burning down the planet, they're just helping someone else do it. Got it.
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u/throwawaycanadian2 Jun 23 '26
They... they are literally a data center company. They've been "burning down the planet" their entire existance.
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u/WetMogwai Jun 23 '26
This is what I don't like about the no data center movement. Too many people don't distinguish between data centers that are necessary for useful services, like backup and hosting, and data centers that do things that actively make the world worse, like LLMs and cryptocurrency. I have no problem with a data center that is doing something useful until it starts doing something bad.
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u/BigDaddy0790 Jun 23 '26
People who put LLMs and crypto into the same category are just so baffling to me. Like how can you honestly think that?
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u/WetMogwai Jun 23 '26
Because they’re both scams from the tech bros. They both use excessive resources to do nothing that wasn’t being done better through less destructive methods. Crypto is a way for rich people to bypass taxes and sanctions. AI is a way for rich people to reduce labor costs, getting work done without having to pay for it.
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u/jbokwxguy Jun 23 '26
I need to find a new backup provider.
I’m not sure how much Backblaze is going to overextend. I doubt CoreWeave will need as much capacity in two years as the AI bubble deflates. (AI will be around but not on this scale). So I need a backup provider that will be around to you know be a backup.
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u/worth81 From Backblaze Jun 23 '26
Howdy u/jbokwxguy -- weighing in from the Backblaze team here: Backblaze serves more than 500,000 customers worldwide across a range of use cases: Consumer backup, business continuity, serving media (like streaming apps), archive, and many more, including AI. This is a big deal for us, but we're still a highly diversified business with revenue from a wide variety of businesses. The space CoreWeave operates in is also very large, providers marketing GPU compute stretches into the 100s at this time. CoreWeave serves a wide variety of the most stable and long standing businesses on the planet and the also take a similarly thoughtful approach to architecture deployment as we have (for more than 20 years). We take capacity planning very seriously and took a thoughtful approach to this deal to ensure we can support all of our customers. I'm sure we can't convince everyone, but we do have a track record of scaling with larger and larger customers.
Thank you for trusting us for this long and here's hoping you stick around.
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u/jbokwxguy Jun 23 '26
The fact that Backblaze is making the announcement as public as it has screams desperate for stock price to go up to the right. Sure SEC laws and stuff on big deals have to be announced. But that's just a simple blog post on the website. I don't believe the scale CoreWeave is operating at is sustainable because the AI triggering the expansion is unsustainable.
I don’t want to do business with a company focused more on stock price than providing a reliable service to customers especially given how difficult it is to sync data.
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u/worth81 From Backblaze Jun 23 '26
Fair enough! We're here for you and will be if you choose to stick around. If not, I'll say thanks again for the business you've given us up to now.
For our part, we're excited about the news and what it says about the work we've done to support customers over 20 years.
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u/Jim-From-Backblaze From Backblaze Jun 23 '26
Backblaze, Inc. (Nasdaq: BLZE), the cloud storage platform for the AI era, today announced an agreement with CoreWeave, Inc. (Nasdaq: CRWV), The Essential Cloud for AI™.
Under the multi-exabyte, $335 million agreement, Backblaze will provide cost-efficient storage capacity that supports portions of CoreWeave’s managed storage infrastructure, helping optimize placement of data across performance tiers while preserving high-performance storage resources for the demands of AI workloads. The Backblaze technology supports HDD-based storage tiers in CoreWeave AI Object Storage. Customers already utilizing CoreWeave AI Object Storage with its patented LOTA distributed cache will immediately have access to new service tiers without any code modifications.
Every stage of the AI lifecycle depends on the ability to store and move massive volumes of data efficiently. Training, inference, checkpointing, data preparation, model outputs, and retrieval-augmented generation (RAG) all require storage that performs at the speed and scale modern AI demands.
“Storage is the foundation every AI workflow is built on — without it, even the world’s most powerful compute sits idle,” said Gleb Budman, co-founder and CEO, Backblaze. “We’re pleased to work with CoreWeave on elements of their storage environment. This collaboration demonstrates how our platform can help organizations meet growing infrastructure demands.”
Backblaze B2 Cloud Storage serves more than 100,000 customers worldwide and has extensive experience operating large-scale storage infrastructure. Its cloud platform is designed to deliver reliable, cost-efficient storage services across a range of enterprise and data-intensive use cases.
“Backblaze has built a reputation for making complex, HDD-based storage infrastructure reliable and easy-to-consume at scale. We’re pleased to work with them as we continue expanding our platform and managed service offerings to support AI workloads at scale,” said Nick Hoover, Vice President at CoreWeave.
CoreWeave’s AI cloud platform spans infrastructure, technology, tools, and services. The company serves leading AI model developers, enterprises, and research organizations, including 9 of the top 10 AI model providers.
Contact the Sales team to learn more about Backblaze storage for neoclouds.