Backblaze Surges on AI Storage Demand with $335M CoreWeave Deal
Event summary
- Backblaze reported Q2 2026 revenue of $42.7M, up 18% YoY, with B2 Cloud Storage revenue growing 34% YoY.
- Signed a $335M strategic agreement with CoreWeave, including warrants valued at ~$22M.
- Adjusted EBITDA margin improved to 30%, up from 18% in Q2 2025.
- ARR reached $177.3M, a 21% YoY increase, with B2 Cloud Storage ARR growing 39% YoY.
The big picture
Backblaze's strong Q2 2026 results underscore the growing demand for scalable, cost-effective storage solutions in the AI era. The $335M CoreWeave deal validates Backblaze as a critical player in the AI infrastructure stack, positioning it to capitalize on the exponential growth of data-intensive workloads. The company's ability to balance revenue growth with operational efficiency will be key to its long-term success.
What we're watching
- AI Infrastructure Demand
- How Backblaze's ability to scale its storage platform will affect its market position in the AI infrastructure space.
- Customer Expansion
- Whether Backblaze can sustain its 67% YoY growth in ARR from large customers generating $50,000+ in ARR.
- Operational Efficiency
- The pace at which Backblaze can maintain its improved adjusted EBITDA margin amid increasing AI workloads.
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