Microsoft is investing a lot of money on cloud computing infrastructure to keep up with the rising demand for services that use AI.
A firm called CoreWeave, which offers streamlined access to Nvidia’s potent GPUs for running AI models, has apparently received an agreement from the corporation to invest billions of dollars over a number of years.
The objective of windows manufacturer’s investment in CoreWeave is to guarantee that OpenAI’s popular ChatGPT chatbot has enough processing capacity.
For its computational requirements, OpenAI uses Microsoft’s Azure cloud computing platform. The agreement with CoreWeave is a reaction to the growing need for Microsoft’s infrastructure as the business looks for new ways to use Nvidia’s GPUs.
With a recent fundraising round of $200 million, CoreWeave has seen significant revenue growth and is now valued at $2 billion. The business has received funding from Nvidia and the hedge fund Magnetar Capital.
CoreWeave offers several Nvidia GPUs, including the A100 for AI and high-performance computing and the A40 for visual computing, and delivers computing power at a price that is much cheaper than that of standard cloud providers.
Since OpenAI released its ChatGPT chatbot, the market for generative AI has grown significantly, leading businesses like Google to incorporate generative AI into their own products.
Microsoft Creating AI Chatbots
Additionally, the windows behemoth has been creating chatbots for key services like Bing and Windows. Microsoft needs more access to Nvidia’s GPUs to accommodate this demand, and the agreement with CoreWeave guarantees a consistent supply.
This year, growing demand for data centers connected to generative AI and huge language models has significantly increased the price of Nvidia’s shares.
For clients who struggle to get enough GPU power from big cloud providers, CoreWeave’s computing capacity, which is 80% less expensive than legacy cloud providers, is a desirable option.
The success of CoreWeave in the market can be attributed to its capacity to provide computational power at a reasonable price.
Windows manufacturer’ investment in CoreWeave is a component of the company’s larger plan to continue leading the AI revolution.
Microsoft can continue to offer the crucial computing resources for OpenAI’s AI models, including ChatGPT, by securing access to CoreWeave’s GPU infrastructure.
Microsoft’s investments in AI infrastructure and collaborations with companies like CoreWeave show the company’s commitment to supplying the rising demand for AI-powered services at a time when the industry is seeing fast growth.
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