Microsoft has withdrawn some cloud agreements with CoreWeave because there were missed deadlines and delivery problems, days after prepares for a $35 billion initial public offering (IPO.
Despite scaling back, Microsoft still holds multi-billion-dollar contracts with CoreWeave, which supplies cloud computing power for AI workloads using Nvidia chips.
The reported move suggests Microsoft is adjusting its reliance on the company as it builds out its own AI infrastructure.
Microsoft Adjusts, CoreWeave Eyes $35B IPO
The decision to pull back from the certain agreement with corewave is not linked to breader shifts in Microsoft’s data center strategy. However, it shows the challenges in securing AI infrastructures after high demand.
Corewave, while being backed by Nvidia, has been aggressively expanding. The company is preparing for a high profile initial public offering (IPO) in New York, targeting a valuation above $35 billion and aiming to raise over $3 billion. If successful, it could be one of the largest tech IPOs in recent years.
CoreWeave Pushes Forward with Expansion
While Corewave deals with contract challenges the company is simultaneously scaling its cloud offering. This week Corewave has just closed an undisclosed sum acquisition of an AI platform developer called Weights and Bias.
This move further strengthen Corewave’s reach and capability in models for training and deployment as well.
CoreWeave still stands out as a significant player in computing and artificial intelligence. The company continues to press forward with IPO plans while expanding its platform to excel in a fast-growing market.
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