Google and Blackstone are launching a new artificial intelligence cloud business backed by an estimated $25 billion investment as competition in the booming AI infrastructure market intensifies.
According to Bloomberg, Blackstone will provide an initial $5 billion in equity capital and become the majority owner of the venture, which aims to build 500 megawatts of computing capacity by 2027.
The project will run on Google’s proprietary tensor processing units, or TPUs, instead of Nvidia chips commonly used by rival “neocloud” providers such as CoreWeave. Veteran Google executive Benjamin Treynor Sloss will lead the new business as chief executive officer.
Bloomberg reported that the partnership reflects the growing AI infrastructure spending boom, with tech firms racing to secure data center capacity and computing power to support rapidly expanding AI services.
