Microsoft Bets Big on AI with Billion-Dollar Deal with Former Ethereum Miner, CoreWeave!
Microsoft has reportedly entered into a billion-dollar, multi-year contract with former Ethereum miner CoreWeave, to use its cloud computing infrastructure for supporting its AI-powered services, following CoreWeave's successful shift to cloud computing and recent $421 million funding round.
Microsoft has allegedly inked a multi-year, billion-dollar contract with CoreWeave, a former Ethereum miner, to leverage its cloud computing services for AI applications, according to sources cited by CNBC.
The deal, reportedly sealed earlier this year, will support Microsoft's widely-used OpenAI chatbot, ChatGPT. Microsoft, which has introduced several AI services over the past year, also uses its own cloud platform, Azure, for sizable computing needs. CoreWeave transitioned from Ethereum mining to cloud GPU computing in 2019, addressing a market gap for affordable, scalable, and diverse compute options.
The Microsoft agreement follows CoreWeave's recent announcement of a $421 million Series B funding extension, with funds earmarked for expanding its AI, machine learning, visual effects and rendering-focused cloud infrastructure. The company's shift from crypto to AI was emphasized by Bitcoin advocate Nic Carter as a significant move that propelled CoreWeave to a $2 billion+ valuation.
