Microsoft pens AI cloud computing deal with former Ethereum miner CoreWeave: CNBC
Microsoft has reportedly signed a deal with former Ethereum miner CoreWeave to use its cloud computing infrastructure to support its Artificial Intelligence-powered services.
According to a June 1 report from CNBC which cites “people with knowledge of the matter,” Microsoft is potentially set to spend billions of dollars on the deal with CoreWeave that will run over multiple years.
One of CNBC’s sources claimed that the deal was signed earlier this year, as Microsoft OpenAI’s widely popular ChatGPT chatbot.
JUST IN:Microsoft $MSFT just signed a deal for AI computing power with Nvidia-backed CoreWeave that could be worth billionsCoreWeave offers Nvidia $NVDA graphics cards that other companies rent outNvidia invested $100M in CoreWeave, which in April was valued at $2B - CNBC
Amid the rapid growth of AI tech over the past 12 months Microsoft has rolled out several AI-powered services. A prime example is the GPT-4 integration with its web browsers Bing and Microsoft Edge, which the firm recently axed the waitlist on.
OpenAI also utilizes Microsoft's own cloud computing infrastructure Azure to handle its sizeable compute requirements.
CoreWeave initially started off as an Ethereum miner back in 2017, utilizing graphics processing units (GPUs) to verify transactions on Ethereum during its formative days as a proof-of-work blockchain.
The firm started pivoting its focus to cloud GPU computing around 2019, after spotting a hole in the market for competitively priced, scalable and varied compute options — something that it claimed legacy providers weren’t offering.
Notably, reports of the deal with Microsoft come just a few days after CoreWeave announced on May 31 that it had extended its $221 million Series B funding round from
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