Microsoft signs deal for A.I. computing power with Nvidia-backed CoreWeave that could be worth billions
Summary
But its not the only place where the software giant is opening its wallet to meet the surging demand for AI-powered services. CNBC has learned from people with knowledge of the matter that Microsoft has agreed to spend potentially billions of dollars over multiple years on cloud-computing infrastructure from startup CoreWeave, which announced on Wednesday that it raised $200 million. CoreWeave sells simplified access to Nvidias graphics processing units, or GPUs, which are considered the best available on the market for running AI models. Microsoft signed the CoreWeave deal earlier this year in order to ensure that OpenAI, which operates the viral ChatGPT chatbot, will have adequate computing power going forward, said one of the people, who asked not to be named due to confidentiality. CoreWeave CEO Michael Intrator declined to comment about the Microsoft deal in an interview last month, but he said revenue has "gone up by many multiples from 2022 to 2023."
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