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Microsoft chose not to exercise $12 billion Coreweave option
The AI economy is being subsidized by public shareholders of Microsoft and Meta until real companies start paying real money to buy software and services.
Microsoft chose not to exercise a nearly $12 billion option to buy more data-center capacity from CoreWeave, people familiar with the matter said, a sign that big tech companies are starting to right-size and tailor their AI budgets. CoreWeave, which is readying for the year’s most closely watched IPO, quickly found another buyer — OpenAI snapped up the contract last week — and Microsoft has reiterated its plan to spend $80 billion on AI. Nvidia CEO Jensen Huang told thousands of eager fans at the company’s annual conference on Tuesday that the appetite for AI is only growing, and the limiting factor is the raw power needed to run increasingly gargantuan data centers.
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