Microsoft Adjusts Partnership with CoreWeave
Microsoft has reportedly scaled back some of its agreements with CoreWeave, a cloud computing provider, due to delivery challenges and missed deadlines, the Financial Times (FT) reported recently. Sources familiar with the matter, who wished to remain anonymous, indicated that Microsoft is reassessing aspects of its collaboration with CoreWeave. This partnership involves significant computing capacity provided by CoreWeave’s data centers, and is valued in the billions of dollars.
Founded in 2017, CoreWeave specializes in providing access to data centers and high-powered chips, primarily supplied by Nvidia, which are essential for artificial intelligence (AI) workloads. This positions CoreWeave as a competitor to major cloud providers such as Microsoft’s Azure and Amazon’s AWS. CoreWeave has been preparing for what might become one of the largest initial public offerings (IPOs) in recent times. According to recent reports, CoreWeave is aiming for a valuation exceeding $35 billion in its planned New York flotation and hopes to raise more than $3 billion through its share sale.
The FT’s sources suggest that Microsoft’s decision to reduce its business with the cloud technology provider is independent of any broader changes in the company’s own data center strategies. Microsoft, CoreWeave, and Nvidia have not yet issued public comments regarding the report. This past Tuesday, CoreWeave expanded its cloud platform offerings by acquiring AI developer Weights & Biases for an undisclosed amount.
