🗞 OpenAI's $11.9B CoreWeave Alliance and Meta's Homegrown AI Chip

🔎 The Latest on the AI Frontier:

• OpenAI Forms $11.9B Alliance with CoreWeave for AI Infrastructure

• Meta Tests Homegrown AI Chip to Reduce External Dependencies

• Other news you might find interesting

🚀 OpenAI signs $11.9 billion five-year deal with CoreWeave for AI data center infrastructure and services

• As part of the agreement, OpenAI will receive a stake in CoreWeave worth approximately $350 million, tied to the company's upcoming Nasdaq IPO.

• CoreWeave, backed by Nvidia, finished 2024 with 32 data centers housing more than 250,000 Nvidia GPUs and is targeting a valuation of over $35 billion in its IPO.

• This strategic partnership represents a significant shift in the AI infrastructure landscape, as Microsoft (which accounts for over 60% of CoreWeave's $1.92 billion 2024 revenue) is also OpenAI's core investor.

💡 Meta begins testing its first in-house AI training chip as part of strategic move to reduce reliance on external suppliers

• The chip, part of Meta's Training and Inference Accelerator (MTIA) series, is being manufactured by Taiwan-based TSMC and is designed as a dedicated accelerator for AI-specific tasks.

• Meta plans to use the chips first for recommendation systems that power Facebook and Instagram feeds, then eventually for generative AI products like its chatbot Meta AI.

• This initiative comes as Meta forecasts 2025 expenses of $114-119 billion, with up to $65 billion in capital expenditure largely driven by AI infrastructure spending.

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