It has been reported that Microsoft will spend nearly $10 billion to lease servers from AI startup CoreWeave between 2023 and 2030. This amount constitutes more than half of the $17 billion total contract value that CoreWeave has signed with its clients.
CoreWeave and Microsoft have not responded immediately to requests for comment. According to previous reports, CoreWeave is preparing for an initial public offering (IPO) in 2025. The company recently secured a $6.5 billion credit line from several investment banks. Prior to this credit arrangement, CoreWeave had raised $12.7 billion in equity and debt financing over the past 12 months, including $7.5 billion in debt financing in May.
Headquartered in Roseland, New Jersey, CoreWeave was founded in 2017. The company rents NVIDIA's AI chips through one of its 14 data centers and plans to have 28 data centers by the end of the year. CoreWeave's main business is to provide AI computing power for clients, helping them accelerate the development and deployment of AI applications.
CoreWeave is backed by NVIDIA, a major supplier of AI chips. In August 2023, CoreWeave raised $2.3 billion in debt from some investors—secured by NVIDIA's AI chips.
