The 'AI economy is currently a closed loop' - and that's probably why OpenAI, not Microsoft, invested a whopping $12bn in CoreWeave

• Microsoft pulled out of a $12bn deal with CoreWeave, citing delays
• OpenAI took over the contract, backed by Microsoft’s own investment funds
• AI sector remains a closed loop driven by a few dominant players

CoreWeave is eyeing a huge (potentially $2.5 billion) IPO in the coming weeks, but it has also had a few unflattering news stories to contend with recently.

Jeffrey Emanuel, whose viral essay described Nvidia as overpriced and led to it losing $600 billion in a single day, has described CoreWeave as a turkey and called it the “WeWork of AI”.

More recently, Microsoft chose to walk away from a nearly $12 billion option to buy more data-center capacity from the AI hyperscaler.

OpenAI to the rescue

The Financial Times (FT) reported sources familiar with the matter saying Microsoft had withdrawn from some of its agreements “over delivery issues and missed ...