Microsoft is planning to move a larger portion of its artificial intelligence production capabilities in-house. This strategic shift aims to reduce the company's reliance on external infrastructure providers.
CoreWeave, a major supplier of GPU capacity to Microsoft, has seen its stock price decline by $3 following the news. The two companies have been operating under a multiyear agreement established in 2023.
The dependency on Microsoft for a substantial share of its revenue creates financial uncertainty for CoreWeave. The company must now focus on diversifying its client base and securing new financing to mitigate potential risks.
