Microsoft inks AI cloud computing deal with former Ethereum miner CoreWeave: CNBC

Microsoft has reportedly signed a deal with former Ethereum miner CoreWeave to use its cloud computing infrastructure to support its artificial intelligence-powered services.

as of June 1 reports From CNBC which cites “people with knowledge of the matter,” Microsoft is potentially set to spend billions of dollars on the deal with CoreWeave that will last several years.

One of CNBC’s sources claimed that the deal was signed earlier this year as Microsoft OpenAI’s widely popular ChatGPT chatbot.

in bus:

Microsoft $msft Signed a deal with Nvidia-backed CoreWave for AI computing power that could be worth billions

CoreWeave provides Nvidia $nvda Graphics cards that other companies rent

Nvidia invests $100M in CoreWeave, valued at $2B in April – CNBC

— Ivan (@StockMKTNewz) June 1, 2023

Amid the rapid development of AI technology in the last 12 months, Microsoft has launched several AI-powered services. A prime example is GPT-4 integration with its web browsers Bing and Microsoft Edge, on which the firm recently removed the waiting list.

OpenAI also uses Microsoft’s own cloud computing infrastructure Azure to handle its massive computation requirements.

CoreWeave initially started in 2017 as an Ethereum miner that uses graphics processing units (GPUs) to verify transactions on Ethereum during its early days as a proof-of-work blockchain.

The firm began shifting its focus to cloud GPU computing around 2019, after seeing a hole in the market for competitively priced, scalable and diverse compute options – something like Claimed The legacy providers weren’t offering that.

Notably, the report of the deal with Microsoft comes days after CoreWeave announced On May 31 that it raised its $221 million Series B funding round from April to a total of $421 million.

The Series B was led by Magnetor Capital, with participation from longtime strategic partner NVIDIA.

The firm said in April that the capital would be used to expand its cloud infrastructure that focuses on a wide range of computational workloads such as artificial intelligence, machine learning, visual effects and rendering.

Connected: Here’s how OpenAI plans to clean up ChatGPT from misinformation

Commenting on the Microsoft deal via Twitter, bitcoin advocate and general partner at Castle Island Ventures Nick Carter highlighted the significance of the firm’s change to the industry:

“Ppl make fun of ‘crypto to AI pivots’ but CoreWeave went from mining ETH to using their fleet to do computation for AI and now they are worth $2b+…the most in the world right now” One of the fastest growing companies.

ETH put them in business. Interestingly, they would not have been in business if the merge had happened at the time. Because the merge took so long, they were able to extend it while planning the next thing.

— Nick Carter (@nic__carter) June 2, 2023

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