To address the increased demand for AI-powered services, Microsoft is continuing to invest in cloud computing infrastructure.
The corporation has reportedly agreed to invest billions of dollars in CoreWeave, a startup that provides simpler access to Nvidia’s powerful graphics processing units (GPUs) for running AI models. Microsoft is investing to ensure that OpenAI, the firm behind the famous ChatGPT chatbot, has enough computer capacity.
To achieve its computing demands, OpenAI relies on Microsoft’s Azure cloud infrastructure.
CoreWeave just raised $200 million in fundraising following a $2 billion valuation. The company provides access to Nvidia GPUs, which are well-known for their use in AI applications. Microsoft’s agreement with CoreWeave allows the tech giant to access additional GPU capacity in order to address the growing demand for AI infrastructure.
Michael Intrator, CEO of CoreWeave, disclosed that the company’s revenue had more than doubled from 2022 to 2023, showing an increase in demand for its services.
The collaboration between Microsoft and CoreWeave highlights the increased competitiveness in the generative AI area. Many companies, including Google, hurried to include generative AI into their products when OpenAI debuted ChatGPT, which revealed AI’s ability to generate sophisticated responses. Microsoft has also been aggressively adopting chatbots for its own services, including Bing and Windows.
Nvidia’s stock price has increased by 170% this year as its GPUs are widely employed in AI and huge language models. The company’s market valuation recently surpassed $1 trillion. Nvidia’s growth will be supported by data centres, which will be propelled by rising demand for generative AI and huge language models. Nvidia GPUs are used to train OpenAI’s GPT-4 model, which drives ChatGPT.
CoreWeave claims to provide computing power that is 80% less expensive than legacy cloud providers. The company offers Nvidia’s A100 GPUs as well as the more economical A40 GPUs for visual computing. Some clients were unable to secure sufficient GPU power from major cloud providers and resorted to CoreWeave for cost-effective solutions.
