Former Ethereum (ETH) miner strikes a billion-dollar deal with Microsoft

A former Ethereum (ETH) miner CoreWeave has inked a billion-dollar AI computing contract with Microsoft (MSFT). The deal will involve using CoreWeave’s computing infrastructure for OpenAI’s ChatGPT. Meanwhile, that might see Microsoft reaping billions in the upcoming years.

Microsoft has signed a multibillion-dollar multi-year deal with CoreWeave, which is transitioning from an ethereum miner to a general-purpose cloud computing platform, people familiar with the matter reported.

— ShiLian Investment (@ShiLian_Group) June 2, 2023

Once a leading Ether miner

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CoreWeave is a renowned cloud services provider, offering large-scale GPU computing resources with the most flexible and fastest infrastructure. Its use cases include AI and machine learning, pixel streaming, batch processing, and VFX & rendering. Moreover, its services are up to 80% cheaper and 35 times quicker.

CoreWeave was a leading US Ethereum miner. Moreover, the firm lent 6K GPUs to support the COVID vaccination efforts. CoreWeave has maintained stable growth and shifted its focus to other goals besides cryptocurrency mining.

Microsoft’s massive AI bet

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CoreWeave allows developers access to Nvidia graphic cards. These cards are essential when interacting with models that need high computational power – like AI technologies. Meanwhile, CoreWeave and Microsoft are yet to comment on the deal. The crypto space is eagerly waiting for the official statement.

While OpenAI currently utilizes its Azure cloud to run its ChatGPT app, it may require more computational power. Meanwhile, the contract meant a substantial step for CoreWeave, considering the impressive progress since its 2017 launch.

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Microsoft stock sees its price heading to new ATHs, currently trading at $332.58. It gained around 21% over the last twelve months. Meanwhile, the ChatGPT craze has MSFT at an incredible 38.5% YTD increase.

CoreWeave raised $221M amid AI boom

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CoreWeave raised $200 million in a series B funding recently. Nvidia (with its $100M invested) is one of the enterprises that put money into CoreWeave firm. Meanwhile, the AI craze has attracted investors into the tech industry – which remains dented due to layoffs at leading companies.

The generative AI sector saw 46 agreements (worth around $1.7B in funding) in 2023 Q1. Moreover, the space might witness more deals in the coming weeks.