CoreWeave added to gains Wednesday following reports from The Information that Google (NASDAQ: GOOGL ) is in advanced discussions to lease Nvidia (NASDAQ: NVDA ) Blackwell chips, specialized for artificial intelligence applications, from the AI cloud provider. This potential agreement highlights the challenges faced by significant Nvidia customers, including Google, in securing sufficient chip supplies to satisfy the growing demands of their clients. CoreWeave’s unique position with Nvidia and its agility in establishing AI-centric data centers has drawn interest from prominent cloud services and major AI developers such as OpenAI and Meta Platforms (NASDAQ: META ).

CoreWeave, which encountered initial difficulties as a publicly-traded entity last week, has seen a turnaround this week. After its initial public offering was priced at $40, the company’s stock has risen above $60, marked by a 14% increase today. The stock’s recovery comes amidst speculation that Microsoft (NASDAQ: MSFT ), CoreWeave’s biggest customer, was terminating data center leases both in the United States and Europe. Google was among the companies rumored to have acquired some of the vacated capacity.

The past several days have also seen major AI entities like xAI and OpenAI publicly express the need to expand their GPU resources, further indicating that the demand for Nvidia GPUs continues to surpass available supply. This ongoing demand underscores the strategic importance of the potential deal between Google and CoreWeave, as companies scramble to secure the necessary computing power to drive their AI operations.

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