CoreWeave, A Former Ethereum Miner, Secures a Billion-dollar AI Computing Contract with Microsoft
CoreWeave has a multi-billion dollar AI computing contract with Microsoft which will last for several years.
The two companies have not yet published how much the deal is exactly worth.
CoreWeave, valued at $2 billion, was established in 2017 as an ETH mining firm.
Keywords: ETH mining, Ethereum miner, ChatGPT, AI deal, AI computing contract, investment
Introduction
The generative artificial intelligence (AI) prominence which ChatGPT triggered is transforming communication and art industries in a way that has never been imagined. The developments that have taken place since the introduction of generative AI have demonstrated that AI can perform certain functions which human beings do.
As a result, many companies have adopted AI technologies into their business models. This article explores how the partnership between CoreWeave and Microsoft will help businesses and human beings in general.
CoreWeave Partners with Microsoft to promote AI technology
The tech-giant, Microsoft, has partnered with Nvidia-backed CoreWeave in a move that is aimed at boosting Microsoft’s AI’s capabilities. Already, Microsoft has made several strides in the area of artificial intelligence through integrating OpenAI’s GPT-4 into its two web browsers, Microsoft Edge and Bing.
The multi-billion dollar strategic deal between these two companies will enable Microsoft to use CoreWeave, a former Ethereum miner’s, cloud computing infrastructure to drive its AI supported services. Notably, CoreWeave which was established in 2017 offers competitive and scalable cloud GPU computing services.
The financial details of this deal have not been made public, although reliable sources said that it involves billions of dollars. Also, this partnership will stretch for several years.
What is CoreWeave’s Capacity?
We can best understand the significance of this deal if we appreciate CoreWeave’s capacity to provide reliable computing services. Primarily, CoreWeave provides high performance computing GPU service at a low cost. In fact, CoreWeave claims that it provides GPUs that are 80% less costly than “legacy cloud providers.”
The Nvidia’s GPUs which CoreWeave offers are part of the infrastructure that supports sophisticated AI s like OpenAI’s GPT-4 model. Currently, the graphic processing units (GPUs) which CoreWeave provide are the best on the market that work with AI technology like GPTs. Therefore, CoreWeave’s strategic partnership with Microsoft will positively change the AI landscape.
When it was established in 2017 CoreWeave’s main function was to use its GPUs to validate Ethereum transactions. Therefore, it was involved in ETH mining until it discovered another gap in the computing industry. That is why it shifted its focus to providing cloud GPU computing service at an affordable yet sustainable level starting in 2019.
Significantly, a few days after announcing its partnership with Microsoft CoreWeave extended its Series B funding round where it secured $200 million. In total, it raised $421 million through the Series B funding round where companies such as Magnetar Capital participated. As a fact, Nvidia is the principal investor in CoreWeave which is currently valued at $2 billion.
Meanwhile, Businesswire quoted Michael Intrator, the CoreWeave CEO, when he explained the expansion the company is making in relation to the provision of GPU computing service. He said, “In my 25-year career, I’ve never been a part of a company that’s growing like this. “It’s an incredible moment in time. From a demand standpoint, revenue and client scale, the rise has been exponential, and Magnetar has been an amazing partner from the beginning.”
Microsoft Partners CoreWeave - Binance
Microsoft’s Involvement in AI
Microsoft’s collaboration with CoreWeave is not its first venture into the AI field. During the first quarter of 2023, it invested $10 million in OpenAI, a company which is behind the AI-based chatbot, ChatGPT. In essence, the partnership with CoreWeave should enable Microsoft to leverage the transformative power of artificial intelligence in its business model and push its technology to new boundaries.
What is the significance of the partnership between Microsoft and CoreWeave?
The collaboration between Microsoft and CoreWeave is likely to manifest the transformative power of AI in both Web2.0 and Web 3.0. It also shows that crypto firms may come with innovations that apply to web2 infrastructure.
Second, Microsoft is likely to reach new frontiers in its quest to introduce transformative products and services. This is because it now has accessibility to technology that enables it to scale to new heights. Also, this is likely to revolutionize data analysis and machine learning which are essential to modern firms that rely on innovation to solve emerging problems.
This partnership also shows the importance of integrating blockchain and AI technologies. More importantly, this will likely make many tech firms recognize the importance of the web3 industry. And this is also likely to enhance further adoption of blockchain technology in different sectors.
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Read also: Gate.io Strategy Bot Introduces AI Optimization and Neutral Strategies
Conclusion
Recently, Microsoft struck an AI deal with CoreWeave that may last for several years. The AI computing contract will enable CoreWeave, the former Ethereum miner, to provide GPU computing service to Microsoft. Analysts believe that this collaboration may entice other fin-tech companies to harness the power of AI and blockchain technologies.
