icon
icon
icon
icon
Upgrade
icon

Microsoft (MSFT.US) has leased CoreWeave AI servers for nearly $10 billion

AInvestSaturday, Nov 2, 2024 12:10 am ET
1min read

Microsoft (MSFT.US) is reportedly set to spend nearly $10bn renting servers from AI startup CoreWeave over the next seven years, according to a report that cited comments made to investors.The amount is larger than previously known, and represents more than half of the $17bn contract CoreWeave has signed with its clients, the report said.CoreWeave and Microsoft did not immediately respond to requests for comment.CoreWeave, which is backed by Nvidia (NVDA.US), is reportedly preparing for an IPO in 2025.Recently, CoreWeave secured a $650m credit facility from several investment banks. The credit arrangement followed $12.7bn in equity and debt financing raised by CoreWeave over the past 12 months, including a $7.5bn debt financing in May. It also raised $2.3bn in debt in August 2023 from some investors, using Nvidia's AI chips as collateral.CoreWeave, which was founded in 2017 in Roseland, New Jersey, rents Nvidia's AI chips through one of its 14 data centres and plans to have 28 by the end of the year.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.