Microsoft plans to spend nearly 10 billion U.S. dollars renting CoreWeave's servers over the next decade for artificial intelligence-related businesses. This huge investment accounts for more than half of the total US$17 billion in contracts CoreWeave has signed with customers, highlighting Microsoft's emphasis on the development of artificial intelligence technology and its reliance on CoreWeave's powerful computing resources. The editor of Downcodes will take you to understand the details behind this transaction and the development history of CoreWeave.
Microsoft will reportedly spend nearly $10 billion renting servers from artificial intelligence startup CoreWeave between 2023 and 2030. This amount represents more than half of the $17 billion in total contracts CoreWeave has signed with customers.
CoreWeave and Microsoft did not immediately respond to requests for comment. According to previous reports, CoreWeave is preparing for an initial public offering (IPO) in 2025. The company recently secured a $650 million credit line from several investment banks. Prior to the credit facility, CoreWeave had raised $12.7 billion in equity and debt financing in the past 12 months, including a $7.5 billion debt financing in May.
Roseland, N.J.-based CoreWeave, founded in 2017, leases Nvidia's AI chips through one of its 14 data centers and plans to have 28 data centers by the end of the year. CoreWeave's business is mainly to provide customers with artificial intelligence computing capabilities to help them accelerate the development and deployment of artificial intelligence applications.
CoreWeave is backed by Nvidia, a major supplier of AI chips. CoreWeave raised $2.3 billion in debt from select investors in August 2023 - using Nvidia's artificial intelligence chips as collateral.
This transaction not only reflects Microsoft's huge investment in the field of AI, but also heralds the rise of CoreWeave in the artificial intelligence infrastructure service market. In the future, CoreWeave's development deserves continued attention, and its IPO performance is also highly anticipated. The editor of Downcodes will continue to bring you more technology information.