CoreWeave secures $200 million in extended Series B funding, followed by a reported AI cloud computing deal with Microsoft.
According to reports, Microsoft has entered into an agreement with Core Weave, a former Ethereum miner, to utilize its cloud computing infrastructure in bolstering its Artificial Intelligence-driven services.
Citing insider sources, CNBC’s June 1 report suggests that Microsoft is poised to invest billions of dollars in a multi-year agreement with CoreWeave.
According to an insider quoted by CNBC, the deal between Microsoft and CoreWeave, which involves Microsoft’s widely popular ChatGPT chatbot powered by OpenAI, was signed earlier this year.
JUST IN:
Microsoft $MSFT just signed a deal for AI computing power with Nvidia-backed CoreWeave that could be worth billions
CoreWeave offers Nvidia $NVDA graphics cards that other companies rent out
Nvidia invested $100M in CoreWeave, which in April was valued at $2B – CNBC
— Evan (@StockMKTNewz) June 1, 2023
In the dynamic landscape of AI technology, Microsoft has introduced numerous AI-powered services, showcasing its significant growth in the past year. Notably, Microsoft eliminated the waitlist for GPT-4 integration with its web browsers, Bing and Microsoft Edge, enabling wider accessibility to this advanced feature.
Additionally, OpenAI relies on Microsoft’s Azure cloud computing infrastructure to meet its substantial computational needs. CoreWeave, originally established as an Ethereum miner in 2017, utilized GPUs to validate transactions on the Ethereum blockchain during its early stages as a proof-of-work network.
Around 2019, CoreWeave recognized a gap in the market for cost-effective, scalable, and diverse compute options, specifically in cloud GPU computing. This realization prompted the firm to shift its focus, as it identified a lack of such offerings from legacy providers.
Significantly, the news of the agreement with Microsoft emerges shortly after Core Weave’s announcement on May 31 regarding the expansion of its Series B funding round. Originally valued at $221 million, the funding was augmented to reach a total of $421 million. Magnetar Capital spearheaded the Series B funding, while long-standing strategic partner NVIDIA also participated in the investment.
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Back in April, Core Weave declared its intention to utilize the raised capital to amplify its cloud infrastructure, catering to a diverse array of computational workloads including artificial intelligence, machine learning, visual effects, rendering, and more.
In a Twitter comment, Nic Carter, a Bitcoin advocate and Castle Island Ventures general partner, underscored the significance of Core Weave’s transition within the industry. Carter highlighted the company’s journey from Ethereum mining to leveraging its computing fleet for AI-related tasks, resulting in a valuation exceeding $2 billion. He further emphasized CoreWeave’s remarkable growth, positioning it as one of the rapidly expanding enterprises globally.
Well to be fair I don't think ETH gave them much choice! 😬
— Jameson Lopp (@lopp) June 2, 2023
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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