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In another chess move with Microsoft, OpenAI is pouring $12B into CoreWeave
OpenAI has signed a massive deal with GPU-heavy cloud service provider, CoreWeave, in a five-year agreement worth a staggering $11.9 billion. This unprecedented transaction involves OpenAI purchasing $350 million worth of equity in CoreWeave, a move that could significantly alter the landscape of the AI industry.
The deal is all the more remarkable considering CoreWeave’s strong ties to Microsoft, with the software giant accounting for 62% of CoreWeave’s revenue in 2024. This development raises questions about the nature of OpenAI and Microsoft’s complex relationship.
While it is clear that OpenAI needs access to a vast array of computing resources, the company has been struggling to secure them from Microsoft, which has been developing its own AI models and hiring away key personnel from OpenAI. The fact that OpenAI has turned to CoreWeave underscores the importance of this agreement in securing the necessary infrastructure for the company’s continued growth.
In a separate but related development, OpenAI CEO Sam Altman recently expressed his concerns about the lack of available GPUs, stating that the company is “out of GPUs.” This deal with CoreWeave effectively addresses this issue, allowing OpenAI to expand its operations and maintain its market leading position in AI research and development.
Furthermore, it appears that the agreement between OpenAI and CoreWeave has taken Microsoft by surprise. The sudden shift in allegiance could potentially disrupt the dynamics of their relationship and create new opportunities for innovation and competition within the sector.
In conclusion, this monumental deal has significant implications for the future of AI, as two major players navigate a complex landscape of alliances, rivalries, and technological advancements.
