CoreWeave Gets a Billion-Dollar Deal with Microsoft for AI Computing
CoreWeave, a former Ethereum miner, has signed a billion-dollar deal with Microsoft for artificial intelligence (AI) computing. The contract could be worth billions over several years, although specific figures have not been released. The deal involves using CoreWeave’s cloud computing for OpenAI’s ChatGPT, a viral chatbot.
CoreWeave Secures Contract with Microsoft
CoreWeave, a leading Ethereum blockchain miner in the US, has previously contributed over 6,000 high-end GPUs to facilitate the development of Coronavirus vaccines. As the company’s importance and worth continue to grow, there has been a pivot in attention from blockchain mining to other pursuits.
CoreWeave, has entered into a contract with Microsoft to offer artificial intelligence (AI) computing services. The exact value of the deal has not been revealed, but it is believed to be worth billions of dollars over several years. The agreement entails CoreWeave’s cloud computing being employed for OpenAI’s ChatGPT, a prevalent chatbot.
Within the last 60 days, CoreWeave has achieved a significant milestone by securing more than $400 million. The company has transitioned its attention from Ethereum mining to a versatile cloud computing platform.
In the most recent round of funding, known as Series B, CoreWeave was able to raise $221 million. The funding was led by Magnetar Capital, and Nvidia, Nat Friedman (previously the CEO of GitHub), and Daniel Gross (a former executive at Apple) also made contributions. As a result of this funding round, the company’s value is now estimated to be around $2 billion.
How will OpenAI Benefit from This?
In 2022, OpenAI introduced ChatGPT, a chatbot driven by AI that has garnered significant attention in the realm of generative artificial intelligence. CoreWeave’s cloud computing services are heavily reliant on GPUs, which have become a crucial element in AI applications like ChatGPT.
CoreWeave sets itself apart from other cloud providers by giving priority to GPU-accelerated technology, leading to exceptional performance for specialized applications, especially those pertaining to AI. OpenAI, whose computing demands are substantial, depends on Microsoft’s Azure cloud infrastructure. Microsoft recently made a deal with CoreWeave to ensure that OpenAI’s computing requirements are met efficiently.
OpenAI’s ChatGPT will benefit from CoreWeave’s cloud computing services as it offers the necessary computing power to carry out AI training and inference workloads. CoreWeave’s ability to create and improve puts it in a distinctive position to promote the development of generative AI technology. Furthermore, the cloud computing services provided by CoreWeave are 80% more affordable than conventional cloud providers, making them a desirable option for enterprises looking to expand their AI workloads.