Google In Talks To Rent Nvidia's Blackwell Chips From CoreWeave: Report

Alphabet Inc.’s GOOG GOOGL Google is looking to increase its AI and computing resources to support its growing range of applications.

With Nvidia Corp.’s NVDA latest generation Blackwell GPUs seeing massive order backlogs and wait times as high as 12 months, the company is resorting to other solutions to overcome this bottleneck.

See More: Nvidia-Backed CoreWeave IPO: 5 Things Investors Need To Know Before Buying Shares

What Happened: According to reports from The Information, Google is in talks with the recently listed CoreWeave Inc. CRWV to rent the latter’s Nvidia servers, which are equipped with the latest generation Blackwell chips.

Additionally, the search giant might also rent space in CoreWeave’s data centers to install its own Tensor Processing Unit (TPU) chips, which were made in collaboration with Broadcom Inc. AVGO.

CoreWeave, which was listed on the Nasdaq late last week, is up 53% from its offer price of $40, owing to its multi-billion dollar deals with several heavy-hitters in the AI space. Currently, Microsoft Corp. MSFT accounts for 60% of the company’s $1.9 billion in annual revenue, but it is quickly diversifying.

In addition to its talks with Google, CoreWeave recently signed a 5-year deal with OpenAI worth $12 billion for its growing AI infrastructure needs.

Why It Matters: Whether it is Google, Nvidia’s backlogs, or CoreWeave’s rally, they all point to the same thing – the unrelenting demand for AI computing, which is only set to grow by leaps and bounds.

While Google and Nvidia are both down 17% and 20% year-to-date, owing to high valuations and turmoil surrounding tariffs, Nvidia CEO Jensen Huang did not hesitate when saying that reasoning models will require at least 100 times more computing power than the current generation models that power the likes of ChatGPT.

In other words, we’ve barely scratched the surface in terms of AI infrastructure demand, with plenty more growth to be had across all these stocks.

Following a weak debut, Coreweave started rallying this week, and according to Benzinga’s Edge Stock Rankings, it is set to see strong price trends in the short, medium, and long terms. Click here for more such insights.

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