In addition to GPU rentals, Google is exploring the option to lease space in CoreWeave's data centers for its TPU chips.

Amidst reports that Microsoft may terminate some data center leases, Google is looking into acquiring this vacant capacity to enhance its operational capabilities.

Google is currently in negotiations with CoreWeave to rent Nvidia's Blackwell chips, aiming to bolster its AI capabilities.

CoreWeave's stock has seen a significant rise, increasing 53% since its IPO, driven by substantial contracts in the AI sector, including a recent 14% surge to over $60.

This potential collaboration underscores the strategic importance of partnerships in the competitive AI computing market, as companies strive to enhance their technological resources.

The company has secured a major $12 billion, five-year deal with OpenAI to meet its AI infrastructure needs.

Despite this growth, CoreWeave's revenue remains heavily reliant on Microsoft, which accounted for 60% of its $1.9 billion annual revenue in 2024, prompting efforts to diversify its client base.

The ongoing shortage of NVIDIA GPUs has created supply constraints in the AI sector, with companies like xAI and OpenAI expressing urgent needs for more GPU resources.

Both Google and Nvidia have faced stock declines this year due to high valuations and tariff-related issues, yet the demand for AI infrastructure continues to grow.

Nvidia's Blackwell chips, designed specifically for AI workloads, are in high demand, contributing to significant order backlogs with wait times reaching up to 12 months.

Google's capital expenditures for 2025 are projected to reach $75 billion, primarily focused on expanding its data centers and networking infrastructure.

If finalized, the deal with CoreWeave would significantly enhance Google's AI infrastructure, positioning it competitively in the rapidly growing AI market.