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Investing.com -- AI cloud provider CoreWeave has denied an earlier report from the Financial Times that major customer Microsoft Corporation (NASDAQ:MSFT) has walked back on some of its commitments to the company.
"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 said.
The matter is crucial as it comes just a month before CoreWeave’s initial public offering.
Earlier, the Financial Times reported that Microsoft has withdrawn from some of its agreements with Coreweave to provide cloud computing capacity due to delivery issues and missed deadlines, citing people with knowledge of the matter. Some of the issues had also shaken Microsoft’s confidence in CoreWeave, although the tech giant still held several contracts with the data center operator.
Microsoft is by far CoreWeave’s biggest customer, and has seen strong demand from the Redmond, Washington-based tech giant as it ramped up its artificial intelligence offerings over the past two years.
But a shift in their relationship could sully Coreweave’s prospects, especially as the New Jersey-based cloud firm heads for a New York IPO in April. The company had earlier this week filed for an IPO and NYSE listing, seeking to raise $4 billion and valuing the firm at $35 billion.
Microsoft’s walking away from CoreWeave may also be linked to recent reports that the company was tempering its demand for data centers and cloud computing services. TD Cowen had released a note in February stating that the tech giant had canceled several data center leases in the U.S.
(Ambar Warrick contributed to this report)