Microsoft plans to spend nearly $10 billion to lease AI servers from CoreWeave between 2023 and 2030, which accounts for more than half of the $17 billion contract total signed between CoreWeave and its clients. CoreWeave is preparing for its initial public offering in 2025 and has raised $12.7 billion in funding over the past 12 months. The company plans to expand the number of its data centers by the end of the year
According to reports, Microsoft (MSFT.US) will spend nearly $10 billion to rent servers from the artificial intelligence startup CoreWeave between 2023 and 2030.
The report cites comments made by the company to investors, adding that this amount is larger than previously known and accounts for more than half of the $17 billion contract total signed between CoreWeave and its clients.
CoreWeave and Microsoft did not immediately respond to requests for comment.
According to previous reports, CoreWeave, backed by NVIDIA (NVDA.US), is preparing for an initial public offering (IPO) in 2025.
Recently, CoreWeave secured a $650 million credit line from several investment banks. Prior to this credit arrangement, CoreWeave raised $12.7 billion in equity and debt financing over the past 12 months, including $7.5 billion in debt financing in May. It also raised $2.3 billion in debt from some investors in August 2023, using NVIDIA's AI chips as collateral.
Founded in 2017 and headquartered in Roseland, New Jersey, CoreWeave 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