Microsoft and CoreWeave are competitors in the AI market, but this does not prevent Microsoft from being the startup’s largest client. Microsoft’s costs for renting servers from CoreWeave in the period from 2023 to 2030 will amount to almost $10 billion, writes The Information resource. This amount is larger than previously reported and accounts for more than half of all CoreWeave’s $17 billion in customer contracts, the resource noted, citing the company’s comments during communications with investors.
CoreWeave recently secured a $650 million line of credit from several investment banks, including JPMorgan Chase, Goldman Sachs and Morgan Stanley. Prior to this, CoreWeave raised $12.7 billion in equity and debt financing over the 12 months, including a $7.5 billion debt financing round in May. The company also raised $2.3 billion in August 2023 in the form of debt secured by NVIDIA accelerators from a number of investors. In addition, NVIDIA itself invested in the company.
Image source: CoreWeave
CoreWeave, founded in 2017 and based in Roseland, New Jersey, provides cloud-based leased access to the most advanced NVIDIA accelerators across its 14 data centers. By the end of the year, the company plans to open another 28 data centers. Earlier it was reported that CoreWeave was preparing for an initial public offering (IPO), which could take place in early 2025.
Microsoft itself is rapidly increasing its purchases of the new generation NVIDIA GB200 NVL super accelerators and intends to aggressively scale its computing resources. And not only for itself – Microsoft rents accelerators from Oracle for the needs of OpenAI.