Microsoft (MSFT) has withdrawn from parts of its agreements with cloud provider CoreWeave (CRWV) due to delays in service delivery, the Financial Times reported Thursday, citing sources familiar with the matter.

The news outlet reported that CoreWeave supplies Microsoft with cloud computing power for AI models and is planning a New York IPO, targeting $4 billion in funding at a valuation of $35 billion.

Sources told the FT that Microsoft will remain an important customer but it has reduced some commitments.

CoreWeave reportedly warned that any shift in Microsoft's demand, contract performance, or regulatory conditions could negatively impact its financial outlook.

Microsoft has agreements to spend over $10 billion on CoreWeave's services by 2030, and has already contributed 62% of CoreWeave's revenue last year, the FT added.

Microsoft and CoreWeave did not immediately respond to MT Newswires' request for comment.

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