Google in Advanced Talks to Rent Nvidia Blackwell GPUs from CoreWeave to Boost AI Infrastructure in 2025

Google’s parent company, Alphabet Inc. (NASDAQ: GOOGL), is back in the spotlight—this time not for a new product launch, but for a potentially game-changing move in the artificial intelligence (AI) infrastructure space. As of April 8, 2025, reports indicate that Google is in advanced discussions to rent Nvidia's (NVDA) cutting-edge Blackwell chips from CoreWeave (CRWV), a specialized cloud provider known for offering GPU-accelerated compute resources. 

This move has piqued the interest of investors and tech analysts alike, especially given the broader macro backdrop of aggressive AI expansion, supply chain constraints, and intensifying competition in the cloud and AI markets. 

So, is Google Stock a Buy, Sell, or Hold Amid the Potential CoreWeave GPU Deal?

Founded in 2017, CoreWeave specializes in providing cloud-based GPU infrastructure tailored for AI developers. The company operates data centers across the United States and Europe, offering scalable access to high-performance computing resources. 

In March 2025, CoreWeave completed its initial public offering (IPO), raising $1.5 billion. Despite an initial downsizing of the IPO, the company's stock experienced significant volatility, attributed to factors such as a limited public float and market speculation. ​

The CoreWeave-Google GPU Deal: What You Need to Know

In early April 2025, The Information reported that Google is seeking to rent Nvidia Blackwell GPUs from CoreWeave, a newly public GPU cloud provider. While the agreement’s financial terms remain undisclosed, early sources indicate it's significantly smaller than Microsoft’s $10 billion commitment to CoreWeave and OpenAI.

What’s driving Google’s sudden need to outsource GPU power?

Google has been facing challenges in meeting the growing demand for its AI services. During a recent earnings call, Google CFO Anat Ashkenazi acknowledged that, the company is “in a tight supply-demand situation,” struggling to keep up with the exploding demand for AI services. Despite increasing capital expenditure—forecasted to hit $75 billion in 2025, primarily for data centers and infrastructure—the current capacity isn’t enough.

To address these constraints, Google is reportedly seeking to rent Nvidia's Blackwell GPUs from CoreWeave. Access to Nvidia's latest Blackwell GPUs through CoreWeave would provide Google with cutting-edge hardware, potentially improving the performance and efficiency of its AI applications.​ 

This partnership would enable Google to rapidly scale its AI capabilities faster without the lead time required to build out its own infrastructure. This will maintain a competitive edge in the rapidly evolving AI landscape, where rivals are also making significant investments.

AI Dominance: Is Google Falling Behind or Playing Smart?

With Microsoft, Amazon, and Meta investing heavily in AI infrastructure, Google’s CoreWeave move could appear reactionary. But here’s the twist: Google has already integrated AI into nearly every corner of its ecosystem. From Search and Android to YouTube and Gmail, the Gemini AI suite powers billions of daily interactions. The company also restructured its AI research under Google DeepMind, accelerating development-to-deployment cycles.

Moreover, tools like Performance Max and AI-generated summaries in Search are keeping users and advertisers within Google’s ecosystem—boosting both engagement and ad revenues. 

Despite a year-to-date correction of 22% in share price, Alphabet remains fundamentally strong. In Q4 2024:

• Revenue hit $96.5 billion (+11.8% YoY)

• Earnings per share (EPS) surged 31.1% to $2.15, beating Wall Street expectations

• Google Search continues to be the crown jewel with $54 billion in revenue, while Google Cloud posted a healthy $12 billion, up 30.1% year-over-year

Analysts project forward revenue growth of 12% and earnings growth of 20.63%, outperforming sector averages. Even YouTube, long viewed as Google’s media cash cow, continues to shine. In Q4, political ad spend helped push its ad revenue to $10.5 billion, and over 1 billion hours of YouTube content is streamed on TVs daily—a stat that rivals traditional broadcasting networks.

Of course, no stock is without risks.

Google continues to face regulatory challenges, particularly concerning its advertising practices. Any expansion efforts, including partnerships, may attract additional scrutiny from regulators.​

• Regulatory Pressure: Google faces ongoing antitrust scrutiny in the U.S. and Europe. A late-2024 DOJ ruling may reshape its Search advertising business, impacting ad revenues.

• CoreWeave Deal Uncertainty: The deal is still in early stages and not as large as competitors'. There's no guarantee it will provide sufficient GPU capacity fast enough.

• Intensifying Competition: Microsoft and Amazon are scaling AI investments at an unprecedented rate. Google must maintain high capex just to keep pace.

The AI infrastructure market is highly competitive, with major players like Amazon and Microsoft investing heavily. Google's collaboration with CoreWeave reflects a strategic approach to navigating these dynamics.

Still, most of these risks are already priced in, considering the recent share price dip.

Analyst Consensus: “Strong Buy” with Major Upside

According to recent data:

• 41 out of 53 analysts rate GOOGL a “Strong Buy”

• The average price target is $215.70, implying ~46% upside from current levels

With consistent earnings beats, powerful AI integration, and unmatched global reach, Alphabet remains a top-tier long-term investment. If you're betting on the future of AI, digital advertising, and global connectivity, Google's fundamentals, innovation strategy, and market presence make it a compelling buy. 

The potential CoreWeave GPU deal underscores its commitment to enhancing AI capabilities and addressing capacity challenges. This move could strengthen Google's position in the AI sector, provided it effectively manages associated risks and market competition. While short-term regulatory and competitive risks remain, the long-term growth story is intact—and arguably stronger than ever.