Microsoft Secures Deal with CoreWeave to Support its AI Services
Microsoft has signed a deal with CoreWeave, a former Ethereum miner, to use its cloud computing infrastructure to support its artificial intelligence (AI)-powered services. According to sources with knowledge of the deal, Microsoft is potentially set to spend billions of dollars on the deal with CoreWeave over multiple years. CNBC reported on June 1st that the deal was signed earlier this year. The move comes as Microsoft rolls out several AI-powered services, including OpenAI’s GPT-4, which recently integrated with its web browsers Bing and Microsoft Edge. This integration is handled using Microsoft’s own cloud computing infrastructure, Azure.
CoreWeave began as an Ethereum miner in 2017, utilizing graphics processing units (GPUs) to verify transactions on Ethereum. In 2019, the company started pivoting its focus to cloud GPU computing after it spotted a hole in the market for competitively priced, scalable and varied compute options that legacy providers weren’t offering. The deal is significant because it comes just a few days after CoreWeave announced that it had extended its $221 million Series B funding round from April to bring the total to $421 million. The Series B was led by Magnetar Capital, with participation from long-standing strategic partner Nvidia.
The capital raised in April will be used to expand CoreWeave’s cloud infrastructure, which is focused on a wide range of computational workloads such as AI, machine learning, visual effects, and rendering. Commenting on the Microsoft deal, Bitcoin advocate and Castle Island Ventures general partner, Nic Carter, highlighted the significance of the firm’s change of industry. Carter said, “Ppl make fun of ‘crypto to AI pivots’ but CoreWeave went from mining ETH to using their fleet to do computing for AI and now they’re worth $2b+… one of the fastest growing companies in the world right now.”
In conclusion, with this new deal, Microsoft is taking a big step forward in its AI capabilities. As AI continues to grow at a rapid pace, cloud computing infrastructure is becoming increasingly important for supporting this growth. Microsoft’s partnership with CoreWeave will likely greatly benefit Microsoft’s AI services and accelerate the growth of this technology.
Editor Notes:
This news of Microsoft’s deal with CoreWeave highlights the important role that cloud computing will play in supporting the continued growth and development of AI technology. As these technologies continue to evolve, partnerships between industry leaders will be critical for driving progress and innovation. If you’re interested in staying up-to-date on the latest AI and computing news and trends, be sure to check out GPT News Room.
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