Microsoft has signed a deal with AI computing power provider CoreWeave, which could be worth billions of dollars over several years. Sources familiar with the matter disclosed this news. to CNBC.
Although Microsoft and CoreView have been unable to confirm this information, sources told CNBC that the deal was made to ensure that OpenAI’s ChatGPT has enough computing power. Through a partnership with Microsoft, OpenAI currently uses Microsoft Azure infrastructure to run ChatGPT, which consists of resources. The deal appears to have been struck earlier this year.
In recent weeks, we’ve seen NVIDIA’s share price rise as investors anticipate higher revenue for the company due to generative AI services like ChatGPT. CoreWeave also offers cloud computing services powered by NVIDIA hardware.
The announcement of the deal comes just a day after CoreWeave. announced that It had secured a $200 million Series B funding extension, bringing the round’s total to $421 million. The $200 million investment was made by Magnetar Capital.
According to CoreWeave, the funding is helping fill a gap in the market that legacy cloud computing providers are struggling to fill.
“By combining easy access to high-powered GPUs for training AI models with a fast and flexible infrastructure and focusing on a specific type of compute, CoreWeave expands the space,” said Ernie Rogers, Chief Operating Officer, Magnetar. It sets itself apart from other companies out there.” .
“Magnetar believes CoreWeave is ideally positioned to enable world-class results across multiple industries. We are proud to be the lead investor in CoreWeave’s Series B funding round and expansion.
Now that the deal is public knowledge, it could add more fuel to NVIDIA’s stock price as it suggests the company could see more demand for its products as CoreWeave continues to provide resources for Microsoft and OpenAI. trying to
Source: CNBC
