Google and Blackstone form $5 billion AI cloud venture to meet surging demand for specialized chips
12 Sources
[1]
Google, Blackstone plan AI cloud venture with $5 billion backing, WSJ reports
May 18 (Reuters) - Alphabet's Google (GOOGL.O), opens new tab and Blackstone (BX.N), opens new tab plans to launch an artificial-intelligence cloud company using Google's specialized chips, the Wall Street Journal reported on Monday, citing sources. Blackstone, the world's largest alternative
[2]
Blackstone will create a new TPU cloud in a joint venture with Google.
Today, Blackstone announced a joint venture with Google to create a new TPU cloud, giving customers more choice and flexibility in how they access cloud TPUs. Blackstone is making an initial $5 billion equity commitment to bring an expected 500MW of capacity online in 2027. Google will supply
[3]
Google, Blackstone launch AI infrastructure joint venture - SiliconANGLE
Google LLC and Blackstone Inc. are launching a joint venture that will provide a "compute-as-a-service" platform for artificial intelligence workloads. The companies announced the collaboration on Monday. The yet-unnamed venture is launching with $5 billion in equity funding from Blackstone, which
[4]
Google, Blackstone plan AI cloud venture with $5 billion backing: WSJ - The Economic Times
Google and Blackstone are reportedly planning to launch a new AI cloud company, with Blackstone contributing $5 billion in equity for a majority stake. The venture will leverage Google's specialised AI chips, hardware, software, and services. Long-time Google executive Benjamin Treynor Sloss is
[5]
Google-Blackstone New AI TPU Company: 5 Huge Anthropic, Leadership And Google Cloud Things To Know
Google and data center management giant Blackstone are creating a new AI cloud company that will sell Google Cloud TPUs and compute capacity. CRN breaks down Blackstone's $5 billion investment, the sales strategy, who will lead the new company and more. "This new company has enormous potential as
[6]
Google-Blackstone AI Venture Targets Exploding Demand For Compute Power With $5 Billion Initial Data Cent
Google And Blackstone Launch AI Infrastructure Venture In an announcement release, Blackstone said it will initially invest $5 billion in equity to help bring 500 megawatts of data center capacity online by 2027, with plans for future expansion. The total investment value could eventually reach
[7]
Google and Blackstone Team to Launch AI Cloud Venture | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The new venture is designed to provide "efficient data center capacity,
[8]
Google and Blackstone Launch $5B AI Cloud Venture to Expand TPU Access
Google and Blackstone have launched a new AI cloud venture focused on expanding access to Google's TPU chips as demand for AI infrastructure and compute power continues to surge globally. Earlier this month, Blackstone also partnered with Anthropic and Goldman Sachs to form a new $1.5 billion
[9]
Blackstone, Google form $5B data center venture for AI chips By Investing.com
NEW YORK - Blackstone (NYSE:BX) and Google announced a joint venture to establish a company offering data center capacity and access to Google's Tensor Processing Units as a compute-as-a-service offering, according to a press release statement. Blackstone will commit $5 billion in equity capital
[10]
Google, Blackstone plan new AI cloud company- WSJ By Investing.com
Investing.com-- Alphabet's (NASDAQ:GOOGL) Google and Blackstone Inc (NYSE:BX) plan to create a new artificial intelligence cloud company using Google's specialized chips, the Wall Street Journal reported on Monday. Blackstone will invest $5 billion in the company and will be the majority owner of
[11]
Google, Blackstone to launch AI cloud venture to meet data centre demand
May 18 (Reuters) - Alphabet's Google and Blackstone said on Monday that they will form an artificial intelligence cloud business venture aimed at capitalising on an insatiable demand for AI computing services. Blackstone, the world's largest alternative asset manager, will invest an initial $5
[12]
Google, Blackstone plan AI cloud venture with $5 billion backing, WSJ reports
May 18 (Reuters) - Alphabet's Google and Blackstone plans to launch an artificial-intelligence cloud company using Google's specialized chips, the Wall Street Journal reported on Monday, citing sources. Blackstone, the world's largest alternative asset manager, is expected to contribute $5 billion
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Google and Blackstone announced a new AI cloud company backed by $5 billion in equity from the investment giant. The venture will provide compute-as-a-service using Google's Tensor Processing Units, with Blackstone holding a majority stake. Benjamin Treynor Sloss, a 22-year Google veteran, will lead the unnamed company as it brings 500MW of capacity online by 2027.
Google Blackstone Joint Venture Launches with $5 Billion Investment
Google and Blackstone have announced an AI infrastructure joint venture that aims to reshape how companies access specialized AI infrastructure. The new AI cloud company, which remains unnamed, secured a $5 billion investment from Blackstone, giving the world's largest alternative asset manager a majority stake in the venture
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. The deal, valued at $25 billion including leverage, positions Blackstone to become a major compute-as-a-service for AI workloads provider in an era where demand for AI-driven computing continues to accelerate3
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Source: Google
Blackstone's initial commitment will bring an expected 500MW of compute capacity online in 2027, with plans to scale the digital infrastructure significantly over time
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. "We see a generational opportunity to invest capital at scale building AI infrastructure," said Jon Gray, president and COO of Blackstone5
. With $1.3 trillion in assets under management, including more than $150 billion worth of data centers, Blackstone brings substantial expertise in digital infrastructure to the partnership3
.Tensor Processing Units Take Center Stage in New Venture
The venture will provide customers with access to Google Cloud TPUs through a compute-as-a-service model, offering an alternative to industry leader Nvidia GPUs
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. Google will supply hardware, including its specialized AI chips known as Tensor Processing Units, along with software and services to the new company1
. These TPU systems are custom chips purpose-built for AI and optimized for training and inference of advanced AI models, powering Google's most popular AI products including Gemini and Google Workspace5
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Source: SiliconANGLE
Google debuted its two newest AI chips, the TPU 8t and TPU 8i, last month, with processors optimized for training and inference workloads respectively
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. The inference-optimized TPU 8i includes a module called the CAE that can reduce latency by a factor of five, while the TPU 8t features a SparseCore module that enables faster data retrieval during training runs3
. "This joint venture with Blackstone helps meet growing demand for TPUs, which are optimized specifically for efficiency and performance in the AI era," said Google Cloud CEO Thomas Kurian3
.Benjamin Treynor Sloss to Lead New AI Cloud Company
Long-time Google executive Benjamin Treynor Sloss will serve as CEO of the new venture, bringing over 22 years of experience at the search giant
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. Currently serving as Google's Chief Programs Officer, Treynor Sloss oversees many aspects of the company's cloud business, including data center design efforts and network operations3
. He leads a team of 14,000 engineers and has been responsible for global networking, server operations, and data centers throughout his tenure5
. His deep expertise in data center designing, planning, construction, and engineering positions him as an ideal leader for this specialized AI infrastructure venture.Related Stories
Meeting Unprecedented Demand for AI Workloads
The partnership addresses surging global demand for advanced AI workloads as the world's largest companies ramp up investment in artificial intelligence. Last month, Alphabet, Amazon, Microsoft, and Meta signaled that AI spending would not slow down, with combined outlays now expected to exceed $700 billion this year, up from about $600 billion previously
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. Analysts and investors say Google is taking a sizeable share of new AI-driven computing demand, helped by its business tools and custom chips that have lured customers such as Anthropic1
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Source: Analytics Insight
The venture will provide customers with an additional way to access Google Cloud TPUs beyond Google Cloud itself, operating in a model similar to other cloud providers that offer AI infrastructure
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. This move follows Google's recent decision to let a limited number of customers deploy TPUs in their own data centers, with CEO Sundar Pichai citing demand from capital markets firms as one factor behind the decision3
. The deal also raises the possibility that Blackstone may bring these capabilities to its other portfolio companies, including Australian data center operator Airtrunk, acquired for $16.1 billion in 2024, and QTS Realty Trust, purchased for $10 billion in 20213
.Blackstone's Expanding AI Strategy with Anthropic Connection
This Google Blackstone joint venture represents Blackstone's second major AI company formation this month. The investment giant recently announced plans to form a new AI services company alongside Anthropic, along with Hellman & Friedman and Goldman Sachs
5
. That venture will work with midsize companies across sectors to integrate Claude into their operations, with applied AI engineers from Anthropic working alongside the firm's engineering team. Blackstone's commitment to forming full-blown new companies with AI leaders like Google and Anthropic signals its aggressive strategy to capture value across the AI infrastructure stack, from compute capacity to application services.References
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