Microsoft is making a significant move in the world of AI cloud computing, as reports suggest that a huge deal has been struck with CoreWeave, a former Ethereum miner. This multi-billion-dollar deal running over several years raises concerns in the crypto community and highlights the growing ability of former blockchain-based firms to pivot successfully towards new technology sectors.
CoreWeave began life as an Ethereum mining company in 2017, during the formative years of Ethereum’s proof-of-work blockchain. The company quickly recognized a gap in the market for competitively priced, scalable, and varied compute options that existing providers were not offering. In response, CoreWeave began to pivot towards cloud GPU computing around 2019.
Microsoft’s deal with CoreWeave came hot on the heels of the company’s announcement regarding its extended Series B funding round, bringing the total investment to $421 million. Bolstered by participation from long-standing strategic partner NVIDIA, CoreWeave plans to use the capital to expand its cloud infrastructure, focusing on a range of computational workloads including artificial intelligence (AI) and machine learning.
Some skeptics might criticize the dramatic change in direction for CoreWeave, but there is little doubt that the company is now one of the fastest-growing in the world. The deal with Microsoft signifies a major shift in the firm’s fortunes, going from Ethereum miner to partnering with one of the largest tech companies globally.
At the same time, Microsoft’s involvement with CoreWeave raises questions about the future of AI tech and its impact on the blockchain and cryptocurrency industries. Over the past year, Microsoft has launched several AI-powered services, such as GPT-4 integration with web browsers Bing and Microsoft Edge. The partnership between Microsoft and CoreWeave seemingly highlights AI tech’s rapid growth and its potential for reshaping various sectors.
On the flip side, the deal also raises concerns about the security and safety of deploying AI-powered services on such a large scale. The rapid proliferation of AI technology brings with it the potential for misuse and potentially unregulated growth. As has been seen in various industries, rapid technological advancements can often outpace the regulatory framework in place, leading to costly fallout.
The Microsoft-CoreWeave collaboration serves as an important reminder of both the benefits and potential dangers of unchecked innovation. While the partnership undeniably highlights the capabilities of former blockchain-based firms to adapt and thrive in new sectors, it also raises concerns about the future of AI and its impact on the wider world.
Source: Cointelegraph
