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