Microsoft signs A.I. deal with Nvidia-backed startup
Microsoft Corp (NASDAQ: MSFT) is in focus today following a report that it has signed an A.I. deal with CoreWeave.
What’s in it for Microsoft?Copy link to section
The tech behemoth has reportedly agreed to spend billions of dollars over several years on cloud infrastructure from CoreWeave.
Partnering with the startup is means for Microsoft to secure enough computing power to handle advanced A.I workloads in the future, an anonymous source told CNBC on Thursday. Both Microsoft and CoreWeave refrained from commenting on the report.
The news arrives more than a month after the Nasdaq-listed firm said integrating ChatGPT into “Bing” resulted in a 13% year-on-year growth in revenue from search and news advertising in its third financial quarter (find out more).
At writing, MSFT is up roughly 40% versus the start of the year.
CoreWeave counts Nvidia as an investorCopy link to section
Earlier this week, CoreWeave announced to have raised $200 million from Magnetar Capital. That’s on top of $221 million it raised in April to which Nvidia contributed about $100 million.
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Interestingly, Microsoft has been working with the cloud-computing infrastructure startup for months, the source confirmed.
In a recent interview, Michael Intrator – the Chief Executive of CoreWeave revealed the company’s revenue to have increased by several folds from 2022 to 2023 but declined to comment on the Microsoft deal.
Founded in 2017, the Nvidia-backed startup that’s worth over $2.0 billion claims to deliver computing power that’s “35x faster and 80% less expensive than legacy cloud providers”. It has 160 employees in total.