The alarm for the &#34;chip shortage&#34; in AI has been sounded again, and Google has started seeking help from CoreWeave.
According to the well-known Silicon Valley tech media The Information, Google is in deep negotiations with CoreWeave to rent AI servers equipped with the latest NVIDIA Blackwell chips. Reports indicate that over the past two weeks, Google executives have also inquired about the availability of GPUs from other competitors of CoreWeave, further confirming the company's challenges with computing power shortages.
Currently, Google has placed orders for Blackwell chips worth over $10 billion and has been providing these chips to specific customers since February. However, by renting chips from CoreWeave, Google can expand its capacity to lease chips to cloud customers, including Anthropic, Apple, Character AI, and GitLab.
<h2>Data Center Space Also Becomes a Bottleneck</h2>
It is worth noting that Google and CoreWeave are also in preliminary discussions regarding another agreement, where Google plans to rent data center space from CoreWeave to install Google's self-developed TPU (Tensor Processing Unit) chips.
Reportedly, CoreWeave operates a large data center in Denton, Texas, which is currently being used by Microsoft.
It is unclear whether Google has similar arrangements with other data center providers, but this series of actions by Google indicates that it is facing not only a chip shortage issue but also the challenge of insufficient data center space for placing its self-developed chips.
This situation recalls the global NVIDIA chip shortage triggered after the release of ChatGPT in 2023.
At that time, as cryptocurrency prices fell, CoreWeave shifted to visual effects rendering and AI business, coinciding with the rise of ChatGPT. NVIDIA's commitments, along with Microsoft's orders exceeding $4 billion, helped CoreWeave borrow $2.4 billion from investors like Blackstone to build more data centers.
Currently, besides Google, other tech giants have also established partnerships with CoreWeave: Microsoft plans to pay CoreWeave over $10 billion to rent NVIDIA chips before the end of this decade, while OpenAI announced last month that it would pay CoreWeave $12 billion over five years to rent servers equipped with NVIDIA devices.
Last week, CoreWeave went public at $40, and although the stock briefly fell below the IPO price on the first day, it has climbed to over $54 as of Wednesday. CoreWeave stated that due to low demand for its stock, the funds raised from this offering were less than planned

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According to reports, Google is in deep negotiations with CoreWeave to rent AI servers equipped with the latest NVIDIA Blackwell chips, and also hopes to rent CoreWeave's data center space to install its self-developed TPU chips

- Google is negotiating with CoreWeave to rent AI servers equipped with the latest Nvidia Blackwell chips due to a power shortage.  
- The company has ordered over $10 billion worth of Blackwell chips and is also discussing renting data center space from CoreWeave for its TPU chips.  
- This situation highlights a broader challenge in the tech industry, as major companies like Microsoft and OpenAI are also partnering with CoreWeave amid ongoing chip and data center space shortages.

Google Still Lacks GPUs