AI Firm CoreWeave Denies Contract Cancellations with Microsoft

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
TT

AI Firm CoreWeave Denies Contract Cancellations with Microsoft

FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo
FILE PHOTO: A Microsoft logo is pictured on a store in the Manhattan borough of New York City, New York, US, January 25, 2021. REUTERS/Carlo Allegri/File Photo

IPO-bound AI cloud startup CoreWeave said on Thursday it had not seen any contract cancellations after the Financial Times reported that the company's largest customer Microsoft had moved away from some agreements.

"We pride ourselves in our client partnerships and there have been no contract cancellations or walking away from commitments. Any claim to the contrary is false and misleading," a CoreWeave spokesperson told Reuters in an emailed statement.

The FT had reported, citing sources, that Microsoft withdrew from some of its agreements with CoreWeave over delivery issues and missed deadlines. However, the report also said that Microsoft retained a number of ongoing contracts with CoreWeave and it remained an important partner.

The agreement with Microsoft accounted for 62% of CoreWeave's revenue, or $1.2 billion in total, in 2024, according to a company filing.

The startup had warned that any negative changes in demand from Microsoft or a shift in company' relationship with Microsoft would adversely affect its business.

Founded in 2017, Nvidia-backed CoreWeave provides access to data centers and high-powered chips for AI workloads and competes against cloud providers such as Microsoft's Azure and Amazon's AWS.

CoreWeave has been laying the groundwork for a New York flotation at a valuation of over $35 billion, in what could be one of the biggest IPOs in recent times. It is also likely targeting to raise over $3 billion from its share sale, Reuters has previously reported.



Apple Ordered by EU Antitrust Regulators to Open up to Rivals

Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
TT

Apple Ordered by EU Antitrust Regulators to Open up to Rivals

Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo

Apple was ordered by EU antitrust regulators on Wednesday to open up its closed ecosystem to rivals, with the latter spelling out details on how to go about it in line with the bloc's landmark rules and where non-compliance could lead to an investigation and fines.

The move by the European Commission came six months after it opened so-called specification proceedings to ensure that the iPhone maker complies with the Digital Markets Act (DMA) which seeks to rein in the power of Big Tech.

The first EU order requires Apple to give rival makers of smartphones, headphones and virtual reality headsets access to its technology and mobile operating system so they can connect with iPhones and iPads seamlessly, Reuters reported.

The second EU order sets out a detailed process and timeline for Apple to respond to interoperability requests from app developers.

Apple slammed the EU order, saying it would hurt users and help its rivals.

"Today's decisions wrap us in red tape, slowing down Apple's ability to innovate for users in Europe and forcing us to give away our new features for free to companies who don't have to play by the same rules," the company said in an email.

"It's bad for our products and for our European users. We will continue to work with the European Commission to help them understand our concerns on behalf of our users," added Apple.

"With these decision, we are simply implementing the law, and providing regulatory certainty both to Apple and to developers," EU antitrust chief Teresa Ribera said in a statement.

Apple could face an investigation if regulators subsequently find that it has not followed through on the order that could lead to a fine as much as 10% of its global annual sales.