Microsoft has decided to reduce its business dealings with cloud provider CoreWeave due to persistent delivery issues and missed deadlines, according to a report on Thursday, citing anonymous sources.
The two companies had several active contracts that provided Microsoft with cloud computing capacity from CoreWeave’s data centers. These agreements were part of a multi-billion-dollar partnership, the report stated.
CoreWeave, founded in 2017, specializes in offering access to high-powered chips and data centers for AI workloads, primarily powered by Nvidia’s hardware. The Nvidia-backed company is positioning itself as a competitor to major cloud providers like Microsoft’s Azure and Amazon’s AWS.
The company is preparing for what could be one of the largest initial public offerings (IPOs) in recent years, aiming for a valuation of over $35 billion. CoreWeave plans to raise more than $3 billion through its upcoming stock sale.
Despite Microsoft scaling back its relationship with CoreWeave, sources suggest that the move is not related to any broader changes in Microsoft’s own data center strategy.
CoreWeave, Microsoft, and Nvidia have yet to respond to requests for comment.
In a separate development, CoreWeave recently acquired the AI developer platform Weights & Biases, though the financial terms of the deal remain undisclosed. The acquisition is seen as part of CoreWeave’s efforts to expand its cloud platform services.
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