An unconfirmed report states Microsoft and CoreWeave have entered a business partnership worth billions of dollars, to support AI advancement.
Microsoft Corporation (NASDAQ: MSFT) is reportedly diving deeper into the AI space and is partnering with specialized cloud provider CoreWeave on a deal worth billions of dollars. The tech giant is placing itself at the center of the increased demand and interest for services powered by artificial intelligence.
A CNBC report referencing persons familiar with the matter states that over the coming years, Microsoft will spend billions of dollars to ensure that CoreWeave’s technology is available in the market with sufficient computing power.
The report also states that Microsoft and CoreWeave reached an agreement earlier this year to support OpenAI, the company operating ChatGPT. Neither company has confirmed the deal or suggested any collaboration. According to CNBC, both companies refused to comment.
CoreWeave Enjoying AI Boom Outside of Microsoft Deal, Secures $200 Million Funding
Yesterday, CoreWeave announced $200 million in a Series B Extension funding round led by alternative asset manager Magnetar Capital. In a press release, CoreWeave said its specialized cloud infrastructure is now in high demand as the adoption of generative AI technology increases. In addition, the company says its technology can help train and fine-tune AI models and withstand intense demand and workload from users. CoreWeave says it offers these services at prices lower than its competition. The company’s website says its services are 80% cheaper.
According to the press release:
“CoreWeave’s serverless orchestration layer makes it an attractive option for AI startups rushing to get a product to market, as teams can spin up workloads in as little as five seconds with increased portability, less overhead and less management complexity.”
CoreWeave announced the Series B extension only a month after it revealed a $221 million Series B funding led by Magnetar Capital. This brings the total Series B funding round to $421 million.
Among other things, CoreWeave provides users with simplified access to graphics processing units (GPUs) from Nvidia (NASDAQ: NVDA). This access helps boost Nvidia’s GPUs, which are also essential for use with large language models (LLMs) and AI in general.
Microsoft and Artificial Intelligence
Microsoft and OpenAI were in business well before the ChatGPT launch last year. At the time, Microsoft had committed at least $1 billion, which put OpenAI at the forefront of the AI rush. In January, Microsoft announced an extension of the partnership between both companies. Describing the extension as the third phase of a “multiyear, multibillion-dollar investment to accelerate AI breakthroughs, Microsoft provided a few highlights.
The announcement specifies supercomputing at scale, noting that Microsoft will invest in creating and deploying specialized supercomputing systems to help with AI research. It also says Microsoft’s Azure infrastructure will help customers provide AI applications to a global audience. Furthermore, Microsoft said OpenAI’s models will be available across its consumer and enterprise products. With the investment in CoreWeave, Microsoft is helping to support cost-effective AI adoption.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
