Microsoft to Ink Multibillion-Dollar Deal With CoreWeave for AI Computing
In Brief
Microsoft has agreed to a multi-year, multibillion-dollar deal with CoreWeave for cloud computing infrastructure, according to CNBC.
This news comes after CoreWeave announced on Wednesday that it has raised an additional $200 million in Series B extension.
CoreWeave sells simplified access to NVIDIA’s GPUs to its cloud rivals including Microsoft.
Microsoft has likely signed a multi-year, multibillion-dollar deal with CoreWeave for cloud computing infrastructure, according to CNBC who heard from sources with knowledge of the matter.
This news comes after CoreWeave announced on Wednesday that it has raised an additional $200 million in Series B extension just a month after raising $221 million in Series B at a valuation of $2 billion. NVIDIA invested $100 million in the Series B round.
In order to lessen their dependence on NVIDIA, CoreWeave’s cloud competitors Microsoft, Google, and Amazon are developing their GPU chips for Xbox consoles, data centers, and cloud services, respectively.
Meanwhile, NVIDIA is helping cloud providers that don’t produce AI chips to sell GPU access to tech companies developing generative AI tools so that it can maintain its position as market leader and beat out potential chip-making competitors. For instance, CoreWeave provides GPU cloud infrastructure and sells simplified access to NVIDIA’s GPUs, which are consistently ranked among the top performers in benchmarks.
According to CNBC, Microsoft signed the deal earlier this year to ensure that OpenAI will have enough computing power to continue developing ChatGPT. Currently, OpenAI depends on Microsoft Azure’s cloud infrastructure to meet its substantial computer needs. In May, NVIDIA announced it is integrating its AI Enterprise software into Microsoft’s Azure Machine Learning to help enterprises accelerate their AI initiatives.
CoreWeave has seen increased demand for its cloud computing infrastructure to train, serve inference and fine-tune models amid the AI boom which began after OpenAI launched ChatGPT late last year. In the AI arms race, Google released its Bard chatbot in March and Microsoft open the public preview for the AI-powered Bing in April.
As Microsoft continues developing generative AI tools, its deal with CoreWeave provides an additional pathway to access NVIDIA’s GPUs when access to chips is limited.
NVIDIA’s stock price saw a 170% increase this year and the company briefly joined the $1 trillion market cap club this week after reporting strong Q1 earnings and a forecast for Q2 that was 50% higher than Wall Street estimates.
In the Q1 earnings call, NVIDIA CFO Colette Kress mentioned CoreWeave. During his presentation at Nvidia’s GTC conference, CEO Jensen Huang specifically highlighted CoreWeave as well.
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
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Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
