- Microsoft withdrew out of a $ 12 billion
- Openai took over the contract, supported by Microsoft’s own investment funds
- The AI sector remains a closed loop driven by a few dominant players
Coreweave looks at a huge (potentially $ 2.5 billion) IPO in the coming weeks, but it has also had a few unflattering news stories to contend with recently.
Jeffrey Emanuel, whose viral essay described Nvidia as overpriced and led to the lost $ 600 billion in a single day, described Coreweave as a turkey and called it “WeWork of AI”.
Recently, Microsoft chose to move away from an almost $ 12 billion option to buy more data centers capacity from AI-Hyperscaler.
Openai for rescue
The Financial times (FT) reported sources familiar with the case that said Microsoft had been withdrawn from some of its appointments “over delivery questions and unanswered deadlines,” which shook the technology giant’s confidence in Coreweave.
The Ft Added that Microsoft still had “a number of ongoing contracts with Coreweave, and it remained an important partner.”
Microsoft is Coreweave’s largest customer and AI Hypercaler rejected Ft‘History and say “all our contractual relationships continue as planned – nothing has been canceled and no one has gone away from their obligations.”
Shortly after the news broke, it was reported that Openai would take Microsoft’s nearly $ 12 billion instead of helping Coreweave avoid a potentially embarrassing setback close to its closely monitored IPO.
Rohan goswami at semafor made a couple of interesting observations on the news, noting, “This isn’t a sign that microsoft is Pulling back on ai -“ We’re Good for Our $ 80 Billion, ”Satya Nadella Said On Cnbc – But An Indication That The Company Is Being More Tactical About Exactly Wen and WHERE IT IT Spends.
He described this as the rubbing and said, “The AI economy is currently a closed loop and will remain that way until a wider cut of financial actors such as large and medium -sized businesses start spending real dollars on AI software and services. Until then, almost all money comes from a few companies – first and foremost Nvidia and Microsoft – which even depends on their public stock.”
