CoreWeave Denies AI Cloud Contract Issues Amid $35B IPO Plans

IPO-bound AI cloud startup CoreWeave dismissed claims of contract cancellations following a Financial Times report alleging Microsoft (NASDAQ: MSFT) had pulled back from some agreements due to delivery issues. A CoreWeave spokesperson told Reuters that “there have been no contract cancellations or walking away from commitments,” calling contrary claims “false and misleading.”

The FT report suggested Microsoft dropped some CoreWeave agreements over missed deadlines but maintained ongoing contracts, keeping CoreWeave as a key partner. Microsoft declined to comment.

CoreWeave’s partnership with Microsoft is significant, with the tech giant contributing 62% of CoreWeave’s revenue in 2024, totaling $1.2 billion, according to a company filing. The startup has previously warned that any shift in Microsoft’s demand or partnership dynamics could negatively impact its business.

Founded in 2017, CoreWeave specializes in AI cloud computing, offering high-powered chips and data center access, competing with Microsoft Azure and Amazon AWS. Backed by Nvidia, the company is preparing for a New York IPO at a valuation exceeding $35 billion. Reports indicate CoreWeave could raise over $3 billion from the listing, making it one of the largest public offerings in recent years.

As AI-driven cloud computing demand surges, CoreWeave’s positioning in the market remains crucial. The startup’s strong ties with Microsoft and ambitious IPO plans highlight its growing presence in the competitive AI cloud space.