Microsoft Inks Deal With Nvidia-Backed CoreWeave For AI Computing Power

Microsoft needs additional ways to tap Nvidia’s graphic processing units (GPUs), as demand continues to grow for processing power and cloud infrastructure that can run generative artificial intelligence (GAI) models. The Redmond, Washington-based company seems to have found it in the Nvidia-backed startup CoreWeave.

Microsoft reportedly agreed to spend “potentially billions of dollars” over a period of multiple years on cloud computing infrastructure, reported CNBC, citing people with knowledge of the matter.

CoreWeave, founded in 2017, provides a suite of services on top of GPU computing power and cloud infrastructure around AI and machine learning. About 160 employees support clients.

Earlier this week, CoreWeave announced that it had raised $200 million in Series B funding, led by Magnetar Capital, bringing the total for the round to $421 million. Nvidia invested $100 million in the prior financing deal.

Former GitHub CEO Nat Friedman, and former Apple executive Daniel Gross also invested in that prior deal. Magnetar contributed $111 million, with the remainder of the investment being split between Nvidia, Friedman and Gross. 

Microsoft has invested more than $11 billion in OpenAi. Its artificial intelligence technology ChatGPT has managed to gain more than 100 million users as of May 16.  The website generated 1.8 billion visitors per month in April.

Investments in AI by Microsoft have been made in all types of services, from business applications to the Bing engine and Windows browser.

Holding company WPP on Monday announced a historic deal with Nvidia to develop a content engine for assets built on GAI. The engine will support Nvidia’s 3D content development platform Omniverse.

WPP said it would connect an ecosystem of 3D design, manufacturing and creative supply-chain tools, including those from Adobe and Getty Images, letting WPP’s artists and designers integrate 3D content creation with GAI.  

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