Microsoft is set to spend around $10 billion on artificial intelligence (AI) cloud provider CoreWeave by the end of the decade.
According to a report from The Information, CoreWeave told investors that it had recently signed a contract with Microsoft that would see the tech giant use CoreWeave’s data centers to run AI models.
The newly inked deal means that although Microsoft will remain a competitor of CoreWeave through its Azure cloud unit, it will also likely be the company’s biggest customer.
The report follows comments made by Microsoft CEO Satya Nadella and CFO Amy Hood on an earnings call with analysts last week, where they detailed the company’s struggle to have enough GPU servers online to meet customer demand.
OpenAI, which currently relies exclusively on Microsoft Azure for its cloud infrastructure, recently announced it was looking to other data center providers besides Microsoft and in June, it was reported that the company signed a deal to take up compute capacity at an Oracle data center in Abilene, Texas, being developed by Crusoe.
CoreWeave was founded in 2017 as a cryptomining firm but now offers access to GPUs for AI applications. In October 2024, it was reported that CoreWeave had closed a $650 million financing deal with a credit facility led by the likes of Goldman Sachs, JPMorgan, and Morgan Stanley.
That same month, it was reported that Cisco Systems was planning to invest in the company, valuing the AI cloud provider at $23 billion, up from $19.1 billion in May 2024 and $7 billion in December 2023.
In the same report, The Information also said that CoreWeave told investors its projected revenue was expected to quadruple to approximately $8 billion in 2025 and the company is planning to file for an initial public offering by the end of 2024.
