Microsoft has reportedly decided not to exercise its rights to use the $12 billion cloud GPU service contract with CoreWeave, which it obtained as a long-time customer of the company. This led OpenAI to step in and take over the remaining portion of the contract instead, as officially announced last week.
The report indicates that Microsoft has shifted its strategy for GPU data centers for AI workloads from renting GPUs from external providers like CoreWeave to installing its own GPUs in Microsoft’s data centers. This change aligns with OpenAI’s direction of reducing dependence on Microsoft’s cloud services. As a result, the company has entered into a cloud GPU rental agreement with CoreWeave, along with investing an additional $350 million before going public.
Earlier, there were reports that Microsoft had delayed its plans to build additional data centers by canceling two projects, which may be related to OpenAI’s reduced demand.
Source: Win Buzzer
TLDR: Microsoft chooses not to renew $12 billion cloud GPU contract with CoreWeave, prompting OpenAI to take over. Microsoft shifts strategy to internal GPU installation, leading to new agreements with CoreWeave and a $350 million investment. Plans for additional data centers put on hold.
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