Microsoft Passes on $12B Data Center Deal, OpenAI Swoops In
Summary
In a surprising move, Microsoft declined a nearly $12 billion deal for data center capacity, allowing OpenAI to swiftly secure the contract, highlighting the intense competition and high stakes in the AI industry as CoreWeave's impending IPO is viewed as a bellwether for the sector.
Key Points
- Microsoft chose not to exercise a nearly $12 billion option to buy more data-center capacity from CoreWeave.
- OpenAI snapped up the contract last week after Microsoft declined it.
- CoreWeave's upcoming IPO is seen as a litmus test for the broader AI space.