Microsoft and CoreWeave have signed an AI cloud computing deal CNBC.

According to a report from CNBC on June 1, Microsoft has signed a deal with former Ethereum miner CoreWeave to use its cloud computing infrastructure to support its artificial intelligence (AI)-powered services. “People with knowledge of the matter” claim that Microsoft is potentially set to spend billions of dollars on the deal with CoreWeave over multiple years. One of CNBC’s sources claimed the deal was signed earlier in 2023.

JUST IN: Microsoft $MSFT just signed a deal for AI computing power with Nvidia-backed CoreWeave that could be worth billions CoreWeave offers Nvidia $NVDA graphics cards that other companies rent out Nvidia invested $100M in CoreWeave, which in April was valued at $2B – CNBC

— Evan (@StockMKTNewz) June 1, 2023

Microsoft has rolled out several AI-powered services amid the rapid growth of AI tech over the past 12 months. OpenAI’s GPT-4 integration with its web browsers Bing and Microsoft Edge is a prime example, which the firm recently axed the waitlist for. OpenAI also utilizes Microsoft’s own cloud computing infrastructure, Azure, to handle its sizeable computing requirements.

CoreWeave started off as an Ethereum miner in 2017, utilizing graphics processing units (GPUs) to verify transactions on Ethereum during its formative days as a proof-of-work blockchain. The firm started pivoting its focus to cloud GPU computing around 2019 after spotting a hole in the market for competitively priced, scalable, and varied compute options — something it claimed legacy providers weren’t offering.

Reports of the deal with Microsoft come just a few days after CoreWeave announced that it had extended its $221 million Series B funding round from April to bring the total to $421 million. The Series B was led by Magnetar Capital, with participation from long-standing strategic partner Nvidia. In April, the firm stated that the capital would be used to expand its cloud infrastructure, which is focused on a wide range of computational workloads such as AI, machine learning, visual effects, and rendering — among others.

Commenting on the Microsoft deal via Twitter, Nic Carter, Bitcoin (BTC) advocate and Castle Island Ventures general partner, highlighted the significance of the firm’s change of industry: “Ppl make fun of ‘crypto to AI pivots’ but CoreWeave went from mining ETH to using their fleet to do compute for AI and now they’re worth $2b+… one of the fastest-growing companies in the world right now.”

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