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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting the surging demand for AI infrastructure, Backblaze announced a strategic five-year, $335 million data storage agreement with AI cloud provider CoreWeave. According to reports, the company's shares surged as much as 31%, hitting a new 52-week high of $11.85. Additionally, B. Riley significantly raised its price target for BLZE to $16 from $7 while reiterating a Buy rating, signaling strong confidence in the company's role in supporting massive AI workloads.
This deal comes as cloud storage providers gain significant momentum from the AI boom, with firms competing to provide vast storage capacities at competitive prices. In comparison to peers, companies like Pure Storage have reported robust AI-related revenue growth in recent quarters (per prior earnings reports), validating Backblaze's positioning in this niche. Per market data, partner firm CoreWeave (CRWV) was priced at $117.95, highlighting the financial scale of Backblaze's new counterparty.
Investors should watch support levels for BLZE, which stood at $8.19 (at close June 18, 2026) following the recent volatility. Looking ahead, market sentiment may be influenced by U.S. Retail Sales data and the Philadelphia Fed Manufacturing Index scheduled for June 18, 2026. The company's ability to execute this massive contract and convert it into operational cash flow will be the primary catalyst for the stock in the second half of the year.