Google and Blackstone launch $5B AI cloud venture

Google and Blackstone are launching a $5B AI cloud venture to deploy TPU-powered data centers, targeting 500 MW by 2027 and up to $25B investment. The platform will compete with Nvidia.

Google and Blackstone have announced a joint venture to launch a new artificial intelligence cloud company. Blackstone is committing $5 billion in equity, with the potential to increase the total investment to $25 billion, including debt. The US-based startup will focus on deploying high-powered data centers and offering compute-as-a-service, leveraging Google’s proprietary Tensor Processing Units (TPUs) to compete with established players like Nvidia and CoreWeave. The venture aims to bring 500 megawatts of TPU-powered data center capacity online by 2027, with plans for further expansion. Customers will be able to access TPUs through this new platform, providing an alternative to traditional Google Cloud channels. By combining Google’s hardware and AI software stack with Blackstone’s large-scale infrastructure investment, the partnership positions the new company as a significant player in the rapidly growing AI infrastructure market. The venture’s success will depend on attracting external clients and the competitiveness of Google’s TPUs against Nvidia’s GPUs.