How Backblaze’s Multi-Exabyte CoreWeave Deal At Backblaze (BLZE) Has Changed Its Investment Story

• Backblaze, Inc. recently announced a multi-exabyte, US$335 million agreement to provide HDD-based storage capacity for CoreWeave, Inc.’s AI Object Storage, enabling more efficient tiering of data and preserving high-performance resources for intensive AI workloads across the model lifecycle.
• The deal deepens Backblaze’s role in AI infrastructure by plugging its cost-focused cloud storage into CoreWeave’s platform, where 9 of the top 10 AI model providers already run workloads, potentially broadening Backblaze’s reach among large, data-intensive customers.
• We’ll now examine how this multi-exabyte CoreWeave agreement could influence Backblaze’s AI-focused growth narrative and evolving enterprise storage positioning.

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Backblaze Investment Narrative Recap

To own Backblaze, you need to believe its transition from legacy Computer Backup toward B2 Cloud as an AI-focused storage partner can offset pressure from declining backup revenues and moderating net revenue retention. The CoreWeave deal looks material to that thesis in the near term, reinforcing AI as the key catalyst while also heightening concentration risk if a few very large AI workloads drive a disproportionate share of usage and revenue.

The CoreWeave agreement lines up closely with earlier AI-focused moves such as the launch of B2 Overdrive in 2025, which targeted multi-petabyte AI and high-performance workloads with higher priced, high-throughput storage. Together, these developments reinforce AI and large enterprise deals as the main potential growth drivers, while the legacy backup business and intense cloud pricing competition remain important constraints on the story.

Yet, against this AI-driven opportunity, investors also need to be aware that...

Read the full narrative on Backblaze (it's free!)

Backblaze's narrative projects $201.4 million revenue and $15.7 million earnings by 2029. This requires 10.3% yearly revenue growth and a $38.1 million earnings increase from -$22.4 million today.

Uncover how Backblaze's forecasts yield a $9.34 fair value, a 14% upside to its current price.

Exploring Other Perspectives

The most bullish analysts already expected revenue to reach about US$213 million by 2028, and saw large AI alliances as a key upside catalyst, so this CoreWeave deal may either validate that optimism or force you to reassess how concentrated that AI bet really is.

Explore 5 other fair value estimates on Backblaze - why the stock might be worth over 2x more than the current price!

Decide For Yourself

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Backblaze research is our analysis highlighting 2 important warning signs that could impact your investment decision.
• Our free Backblaze research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Backblaze's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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