- The report is coming as Microsoft has apparently refused to take more AI resources from AI-Start of Billion Dollars
- Google has already promised to invest tens of thousands of billions in capital costs in FY 2025, probably in AI -hardware
- In other news, the Nvidia-backed Coreweave lost almost a quarter of its value of 48 hours in the middle of wider warehouse abuse
These are interesting times for NVIDIA-supported Coreweave that give Sky Infrastructure optimized for AI workloads.
It was labeled as a “Turkey” and “WeWork of AI” by Jeffrey Emanuel, whose Prescient article warned of Deepseek Famously wiped out $ 2 trillion of the global markets and cut Nvidia’s market value by $ 600 billion in the day.
Around the same time, Microsoft went away from an almost $ 12 billion option to buy additional data center capacity from Coreweave. The same capacity eventually went to the Microsoft-backed Openai. President Donald Trump’s tariffs, which have caused destruction in the stock market, especially in the technology sector, have also affected the AI hypercaler. The company lost almost a quarter of its value within 48 hours.
A significantly less investment
Still, it’s not all bad news as a report from The information Claims Google are in advanced conversations with Coreweave to rent Nvidia Blackwell chips from it after struggling to meet the growing demand.
Google CFO Anat Ashkenazi said during the company’s recent earnings call, “We left the year with more demand than we had available capacity. So we are in a tight supply as needed and work very hard to bring more capacity online. As I mentioned, we have increased investment in CAPEX in 2024, continue to rise in 2025 and we will bring more capacity through the year.”
There is not yet a word about how much Google had to spend with Coreweave but The information Reports that the amount will be “significantly less” than the $ 10 billion Microsoft plans to spend at the end of the decade, or Openai’s new $ 12 billion five-year contract.
Google and Coreweave are also allegedly in “preliminary discussions” about leasing space in Coreweave’s data centers to house Google’s custom TPU chips, The information adds.
If true – Google and Coreweave have not commented The information‘s story citing “Two people informed of the situation” as its source – this would be a welcome boost for Coreweave, who had to scale down its original public offer and allegedly receive 77% of its income from only two customers, one of whom is Microsoft.
