Microsoft (MSFT, Financial) is set to invest nearly $10 billion in renting servers from AI startup CoreWeave over the period from 2023 to 2030. This substantial investment represents more than half of CoreWeave’s $17 billion contract commitments with its clients. This highlights Microsoft’s increasing focus on artificial intelligence capabilities.

CoreWeave, backed by NVIDIA (NVDA), is actively preparing for an Initial Public Offering (IPO) in 2025. To strengthen its financial position, the company recently secured a $650 million credit facility from several investment banks. Additionally, over the past year, CoreWeave has raised a total of $12.7 billion through equity and debt financing, which includes $7.5 billion in debt financing secured in May. In August 2023, the company also raised $2.3 billion in debt from several investors, using NVIDIA’s AI chips as collateral.

Founded in 2017 and headquartered in Roseland, New Jersey, CoreWeave specializes in renting out NVIDIA’s AI chips through its data centers. Currently operating 14 data centers, the company plans to expand to 28 by the end of the year, further solidifying its presence in the market.

https://www.gurufocus.com/news/2579924/microsoft-msft-commits-nearly-10-billion-for-coreweave-servers-by-2030