Microsoft Signs Deal With CoreWeave

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Last Updated on June 4, 2023 by Bitfinsider

Massive investments by Microsoft in OpenAI have positioned the company at the forefront of the artificial intelligence growth. However, this is not the only place where the software titan is opening its coffers to meet the rising demand for AI-powered services.

Microsoft announced a $200 million capital raise on Wednesday. This financing arrives just more than a month after the company’s $2 billion valuation.

CoreWeave provides simplified access to Nvidia’s graphics processing units, or GPUs, which are regarded as the finest GPUs for running AI models on the market. Microsoft signed the CoreWeave agreement earlier this year to ensure that OpenAI, which operates the ChatGPT chatbot, will have adequate computing capacity in the future, according to a source who requested anonymity due to the nature of the information. OpenAI depends on Microsoft’s Azure cloud infrastructure for its extensive computing requirements.

The funding extension disclosed by Magnetar Capital on Wednesday was an extension of the $221 million round announced in April. Intrator stated that Nvidia invested $100 million in the previous financing round. CoreWeave was founded in 2017 and currently employs 160 people.

The share price of Nvidia is up 170% this year. This week, the company’s market capitalization momentarily surpassed $1 trillion for the first time after issuing a forecast for the July quarter that was over 50 percent higher than Wall Street’s expectations.

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