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March 6 - Microsoft (MSFT, Financial) has scaled back select agreements with cloud provider CoreWeave over delivery issues and missed deadlines, a Financial Times report said, citing sources with knowledge of the matter. The technology company made this change because CoreWeave failed to meet the required deadlines for delivering crucial computing resources needed to scale AI models, including OpenAI's ChatGPT.
Despite withdrawing from some deals, Microsoft retains several active contracts with CoreWeave, underscoring the continuing strategic importance of the relationship. Meanwhile, Nvidia (NVDA, Financial)-backed CoreWeave is laying the groundwork for a US$4 billion IPO that could value the company at over US$35 billion.
In a March 3 IPO filing, CoreWeave revealed that Microsoft was its largest customer, at 35% of revenue in 2023 and 62% in 2024. In addition, Microsoft pledges to spend more than US$10 billion on CoreWeave services through five contracts by 2030.
However, Microsoft and Nvidia did not immediately respond to questions asked by different media groups.
This article first appeared on GuruFocus.