Backblaze (BLZE) signed a $335 million, five-year storage capacity deal with CoreWeave (CRWV) on Tuesday, sending BLZE shares up 25%. The agreement expands CoreWeave's storage capacity to multi-exabyte levels while preserving high-performance resources for AI workloads. The deal reflects surging demand for AI infrastructure as the global AI data center market, valued at $147.3 billion in 2025, is projected to reach $810.6 billion by 2033 according to Grand View Research.
Backblaze Expands CoreWeave Storage to Multi-Exabyte Capacity
The $335 million agreement will expand CoreWeave's storage capacity to multi-exabyte levels, with one exabyte equivalent to 1 billion gigabytes. Current CoreWeave AI Object Storage customers can immediately utilize the expanded storage services without updating any code, the company said.
"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 of 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."
At the time of writing, BLZE stock was up 25% on Tuesday and on track for its highest level in nearly seven months if gains hold. CRWV was down more than 5% amid a broader tech-stock-led market selloff.
AI Data Center Market Projected to Reach $810.6 Billion by 2033
The storage deal comes as hyperscalers aggressively pour hundreds of billions of dollars into building data center campuses across the globe. According to a study by Grand View Research, the global AI data center market was valued at $147.3 billion in 2025 and is projected to reach $810.6 billion by 2033, expanding at a compound annual growth rate of 23.9% from 2026 to 2033. The report noted that cloud platforms are expected to remain key drivers of growth in this market.
As artificial intelligence is increasingly adopted across industries, a surge in demand is being witnessed in sectors including energy, semiconductors, and cloud computing.
Retail Traders Call BLZE Emerging AI Cloud Contender
On Stocktwits, retail sentiment on BLZE turned 'bullish' from 'neutral' over the last 24 hours, amid 'high' message volumes.
One user on the platform noted that the need for storage has gone up dramatically with AI. Another user wrote: "I think BLZE is at a significant inflection point as it emerges as a legitimate contender in the rapidly growing AI cloud storage market."
BLZE stock has surged more than 74% so far this year and nearly 59% over the last 12 months, outperforming the S&P 500.
FAQ
What did Backblaze announce on Tuesday?
Backblaze announced a $335 million, five-year storage capacity deal with CoreWeave on Tuesday. The agreement expands CoreWeave's storage capacity to multi-exabyte levels, with current CoreWeave AI Object Storage customers able to immediately utilize the expanded services without updating any code.
How large is the AI data center market projected to become?
According to Grand View Research, the global AI data center market was valued at $147.3 billion in 2025 and is projected to reach $810.6 billion by 2033, expanding at a compound annual growth rate of 23.9% from 2026 to 2033. Cloud platforms are expected to remain key drivers of growth in this market.
How has BLZE stock performed recently?
BLZE stock was up 25% on Tuesday following the CoreWeave deal announcement. The stock has surged more than 74% so far this year and nearly 59% over the last 12 months, outperforming the S&P 500.
