Microsoft Withdraws from Some CoreWeave Agreements Over Delivery Issues

Microsoft has reportedly pulled back from certain agreements with CoreWeave, a cloud computing provider, due to delivery issues and missed deadlines. The two companies had a significant ongoing partnership, with CoreWeave providing computing capacity from its data centers. These agreements were part of a broader, multi-billion-dollar partnership that aimed to support Microsoft’s cloud infrastructure and AI workloads.

CoreWeave, founded in 2017 and backed by Nvidia, offers access to high-powered chips designed for AI tasks. The company competes with other cloud service providers like Microsoft’s Azure and Amazon’s AWS. Despite the pullback, Microsoft’s decision to end some agreements with CoreWeave is unrelated to any shifts in its broader data center plans.

CoreWeave is positioning itself for a major initial public offering (IPO), with ambitions to secure a valuation of over $35 billion. The company plans to raise more than $3 billion through its share sale, signaling its growing role in the cloud computing sector. The company’s recent acquisition of AI developer platform Weights & Biases further strengthens its capabilities in the AI space.

At the time of reporting, neither Microsoft, CoreWeave, nor Nvidia had commented on the situation. However, this development highlights the competitive and sometimes volatile nature of partnerships in the rapidly evolving cloud computing and AI industries.

SOURCE: REUTERS