The ‘AI Economy is currently a Closed Loop’ – that’s why OpenAI invested $12bn, not Microsoft in CoreWeave.
The AI industry is still dominated by a small number of dominant players.
Jeffrey Emanuel – whose viral essay criticized Nvidia for being overpriced, which led to the company losing $600 billion within a day – has called CoreWeave a turkey, and called it “WeWork of artificial intelligence”.
Microsoft has recently walked away from an option to purchase more data-centers from the AI hyperscaler for nearly $12 billion.
The FT added that despite this, Microsoft still had “a number of ongoing contracts with CoreWeave and it remained an important partner.”
Microsoft is CoreWeave’s biggest customer, and the AI hyperscaler refuted the FT‘s story, saying “All of our contractual relationships continue as planned – nothing has been cancelled, and no one has walked away from their commitments.”
Shortly after that news broke, it was reported that OpenAI would be taking up Microsoft’s nearly $12 billion option instead, helping CoreWeave avoid a potentially embarrassing setback so near to its closely watched IPO.
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The FTadded that despite this, Microsoft still had”a number of ongoing contracts with CoreWeave and it remained an important partner.”
Microsoft is CoreWeave’s biggest customer, and the AI hyperscaler refuted the FT‘s story, saying “All of our contractual relationships continue as planned – nothing has been cancelled, and no one has walked away from their commitments.”
Shortly after that news broke, it was reported that OpenAI would be taking up Microsoft’s nearly $12 billion option instead, helping CoreWeave avoid a potentially embarrassing setback so near to its closely watched IPO.
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Rohan Ghoswami, a Semafor analyst, made some interesting observations about the news. He noted that this is not a sign that Microsoft was pulling back on AI. Satya Nadella, on CNBC, said, “We’re fine with our $80 billion.” This is an indication that Microsoft is being more strategic about when and where it invests. OpenAI’s largest backer is Microsoft. This means that OpenAI pays CoreWeave using money that was largely Microsoft’s in the first place. The money for AI software and services is largely coming from Nvidia and Microsoft, which depend on the goodwill and support of their public shareholders.
