It has been reported that Microsoft has entered into an agreement with former Ethereum miner CoreWeave to utilize its cloud computing infrastructure in order to bolster its artificial intelligence (AI)-based services. As per a report by CNBC on June 1, individuals familiar with the matter have stated that Microsoft may spend billions of dollars on this deal with CoreWeave, spanning over several years. One of CNBC’s sources has suggested that the agreement was signed earlier in 2023.
In light of the swift expansion of AI technology in the past year, Microsoft has introduced various AI-based services. A noteworthy instance is the integration of OpenAI’s GPT-4 with its web browsers Bing and Microsoft Edge, for which the company recently eliminated the waitlist.
OpenAI also relies on Microsoft’s cloud computing infrastructure, Azure, to manage its substantial computing needs.
CoreWeave’s origins can be traced back to 2017 when it began as an Ethereum miner that employed graphics processing units (GPUs) to authenticate transactions on Ethereum during its early days as a proof-of-work blockchain.
Around 2019, CoreWeave shifted its attention toward cloud GPU computing after identifying a gap in the market for cost-effective, adaptable, and diverse computing options, which it argued were not being offered by established providers.
It is worth mentioning that news of the agreement with Microsoft surfaced shortly after CoreWeave declared that it had prolonged its Series B funding round from April, raising the total to $421 million. Magnetar Capital spearheaded the Series B funding round, with Nvidia, a long-standing strategic partner, also contributing.
In April, CoreWeave announced that the raised capital would be utilized to expand its cloud infrastructure, which caters to a diverse range of computational workloads, including AI, machine learning, visual effects, and rendering, among others.
Nic Carter, Bitcoin proponent and general partner at Castle Island Ventures, took to Twitter to comment on the Microsoft agreement, underscoring the importance of CoreWeave’s shift in focus within the industry.
