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- Microsoft Corp MSFT has agreed to spend potentially billions of dollars over multiple years on cloud computing infrastructure from startup CoreWeave.
- CoreWeave, announced Wednesday that it raised $200 million from hedge fund Magnetar Capital just over a month after the company reached a valuation of $2 billion, CNBC cites familiar sources.
- CoreWeave sells simplified access to Nvidia Corp’s NVDA graphics processing units, which are ideal for running AI models. Nvidia invested $100 million in the prior financing.
- Microsoft inked the CoreWeave deal this year to ensure adequate computing power for OpenAI, which operates the viral ChatGPT chatbot.
- Reportedly, Oracle Corp ORCL and Microsoft discussed a deal to rent servers lest they run out of computing power for large-scale AI customers.
- Microsoft needs additional ways to tap Nvidia’s GPUs to remain at the top of the AI game fueled by the ChatGPT war.
- Nvidia joined the club of U.S. companies with a $1 trillion market value on Tuesday, buoyed by the AI boom.
- Price Action: MSFT shares traded higher by 0.20% at $333.25 premarket on the last check Friday.
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