Microsoft reportedly signed an agreement with CoreWeave, a former Ethereum mining company, to use its cloud computing infrastructure to support its artificial intelligence (AI)-based services.
According to According to a June 1 CNBC report, citing “individuals with knowledge of the matter,” Microsoft could spend billions of dollars on the CoreWeave deal over several years.
One of CNBC’s sources claimed that the deal was signed in early 2023.
Microsoft $MSFT just signed a deal for AI computing power with Nvidia-backed CoreWeave that could be worth billions
CoreWeave offers Nvidia $NVDA graphics cards that other companies rent out
Nvidia invested $100M in CoreWeave, which in April was valued at $2B – CNBC
— Evan (@StockMKTNewz) June 1, 2023
Microsoft $MSFT just signed an AI computing power deal with Nvidia-backed CoreWeave that could be worth billions
CoreWeave offers Nvidia $NVDA graphics cards that other companies rent
Nvidia invested $100 million in CoreWeave, which in April was valued at $2 billion – CNBC
In the middle of rapid growth of AI technology in the past 12 months, Microsoft has launched several AI-based services. One prominent example is OpenAI’s GPT-4 integration with its Bing and Microsoft Edge web browsers, for which the company recently removed the waitlist.
OpenAI also uses Microsoft’s own cloud computing infrastructure, Azure, to manage its considerable computing requirements.
CoreWeave started out as an Ethereum miner in 2017, using Graphics Processing Units (GPUs) to verify transactions on Ethereum during its formative days as a proof-of-work blockchain.
The company began focusing on GPU cloud computing around 2019 after seeing a gap in the market for competitively priced, scalable, and diverse computing options, something it says he claimedlegacy providers were not offering.
It should be noted that the news of the agreement with Microsoft comes a few days after CoreWeave will announce which had expanded its $221 million Series B funding round since April to reach a total of $421 million.
Series B was led by Magnetar Capital, with participation from longtime strategic partner Nvidia.
In April, the firm stated that the capital would be used to expand its cloud infrastructure, focused on a wide range of computing workloads such as AI, machine learning, visual effects and rendering, among others.
Commenting on the deal with Microsoft via Twitter, Bitcoin advocate Nic Carter (BTC) and general partner at Castle Island Ventures, highlighted the importance of the firm’s industry shift:
“People scoff at ‘crypto to AI pivots’ but CoreWeave went from mining ETH to using their fleet to do AI computing and are now worth over $2 billion… one of the fastest growing companies in the world world right now.”
ETH is what put them in business. Interestingly, they wouldn’t have been in business if the merge had been on time. Because the merge was so delayed, they were able to scale up while planning for the next thing.
— nic carter (@nic__carter) June 2, 2023
ETH is what has allowed them to stay in the market. curiously, they would not have been on the market if the merger had happened on time. Since the merger was so late, they were able to grow while planning what was next.
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