Google (GOOGL, Financial) is in advanced discussions with CoreWeave (CRWV) to lease data center servers equipped with NVIDIA's (NVDA) latest Blackwell architecture GPUs. Although Google is already a major NVIDIA customer, this move highlights its intense demand for computing power in the AI race. Google is also exploring alternative GPU suppliers, indicating its challenges in acquiring high-performance computing chips despite being a leading cloud service provider.
The collaboration extends beyond just leasing GPUs. Google is negotiating with CoreWeave to lease data center space for deploying its own Tensor Processing Units (TPUs). This strategic "compute mix" approach leverages NVIDIA GPUs' capabilities while enhancing AI model training efficiency with Google's TPUs, showcasing Google's strategic foresight in computing resource allocation.
The stock market reacted swiftly, with CoreWeave's share price surging 16%, marking its largest recent gain, reflecting strong investor expectations for increased compute demand. Meanwhile, Google and NVIDIA shares remained stable, underscoring NVIDIA's solidified position as a core compute supplier and Google's clear strategy to bolster its AI competitiveness through diverse partnerships.
