Microsoft Signs Deal for A.I. Computing Power With Nvidia-Backed CoreWeave That Could be Worth Billions
Microsoft is reportedly set to spend potentially billions of dollars over several years on cloud computing infrastructure from startup CoreWeave, which recently raised $200 million in financing.
CoreWeave offers simplified access to Nvidia’s graphics processing units (GPUs), which are highly regarded for running AI models. Microsoft’s agreement with CoreWeave aims to ensure that OpenAI, which operates the ChatGPT chatbot, has sufficient computing power.
OpenAI relies on Microsoft’s Azure cloud infrastructure for its computational needs. Microsoft and CoreWeave have declined to comment on the matter. The demand for AI infrastructure has driven Microsoft to explore additional avenues to tap into Nvidia’s GPUs.
CoreWeave, with its cost-effective computing power offerings, has seen substantial revenue growth. Nvidia’s stock has experienced significant gains this year, primarily driven by the increasing demand for generative AI and large language models.
Microsoft’s investment in CoreWeave is seen as a move to bolster its AI capabilities and meet the growing demand for AI-powered services.
