May. 19 at 1:14 AM
Google and Blackstone are planning to create a new AI cloud joint venture focused on high-performance computing for artificial intelligence workloads, according to the Wall Street Journal.
Blackstone will invest
$5 billion and take a majority ownership stake in the company. The project aims to deploy 500 megawatts of computing capacity by 2027, with expectations to significantly scale beyond that over time as AI demand continues to grow.
The venture will leverage Google’s custom AI hardware, including its Tensor Processing Units (TPUs), along with related software and cloud services. This also strengthens Google’s strategy to further monetize its in-house chip ecosystem.
The new company is expected to compete with AI infrastructure providers such as CoreWeave and reflects the broader industry push to secure additional compute capacity beyond Nvidia’s GPU supply, which remains the market benchmark but is under increasing competitive pressure from alternative architectures.
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