Microsoft to spend almost $10B renting AI servers from CoreWeave: report
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- Microsoft (NASDAQ:MSFT) could spend almost $10B between 2023 and 2030 renting servers from artificial intelligence startup CoreWeave, The Information reported.
- That amount is larger than previously known and represents more than half of the $17B total signed contracts CoreWeave has with customers, the news outlet added, citing comments the company made to investors.
- CoreWeave and Microsoft did not immediately respond to a request for comment from Seeking Alpha.
- CoreWeave, which is backed by Nvidia (NASDAQ:NVDA), is preparing for an initial public offering in 2025, according to previous media reports.
- Recently, CoreWeave secured a $650M credit line from several investment banks. Prior to the credit facility, CoreWeave had raised $12.7B in equity and debt financing over the past 12 months, including a $7.5B debt financing round in May. It also raised $2.3B in debt — backed by Nvidia’s artificial intelligence chips — in August 2023 from a number of investors.
- Founded in 2017, the Roseland, N.J.-based CoreWeave leases out access to AI chips from Nvidia from one of its 14 data centers, with plans to have 28 data centers by the end of the year.