Microsoft Partners with CoreWeave to Power AI Services, Set to Spend Billions Over Years
On June 1, CNBC reported that Microsoft has entered into a contract with CoreWeave, a leading cloud computing infrastructure provider and former Ethereum miner. The collaboration aims to enhance Microsoft’s AI-driven services, with the tech giant potentially investing billions of dollars in CoreWeave over the course of several years.
In recent years, Microsoft has been at the forefront of AI innovation, introducing a range of AI-powered services to meet the growing demand for advanced technologies. A notable example is OpenAI’s integration of GPT-4, which eliminates the waitlist for users of Microsoft’s web browsers Bing and Microsoft Edge.
OpenAI, a strategic partner of Microsoft, relies on the company’s Azure cloud platform to meet its substantial computing requirements. Meanwhile, CoreWeave, initially established as an Ethereum miner in 2017, played a vital role in validating Ethereum transactions during the blockchain’s early stages as a proof-of-work system, utilizing GPUs.
Recognizing the need for cost-effective, scalable, and flexible compute options, CoreWeave shifted its focus to cloud GPU computing around 2019. Traditional suppliers were unable to provide the desired solutions, prompting the company’s transition.
The announcement of Microsoft’s partnership with CoreWeave follows closely after CoreWeave’s successful funding round, where it raised $421 million. This funding, which builds upon the $221 million secured in the company’s April Series B investment round, was largely driven by Magnetar Capital and featured involvement from long-standing strategic partner Nvidia.
With the recent capital infusion, CoreWeave plans to further develop its cloud infrastructure, catering to various computing tasks such as AI, machine learning, visual effects, and rendering. The collaboration with Microsoft positions CoreWeave to play a pivotal role in supporting the tech giant’s AI ambitions and facilitating the delivery of advanced services to users worldwide.
Leave a comment