Google and Blackstone launch joint cloud platform with focus on AI

Google and Blackstone announced on Monday that they will create a joint venture in AI cloud services aimed at capitalizing on the surging demand for AI computing services. This was reported by Reuters, according to UNN.

Details

Blackstone, the world's largest alternative asset manager, is investing an initial $5 billion of its own equity to help launch 500 megawatts of data center capacity in 2027, with further expansion planned for the future.

The U.S.-based venture will provide data center capacity alongside Google's proprietary AI chips, known as Tensor Processing Units (TPUs), under a "compute-as-a-service" model.

Total investment could reach $25 billion, including debt financing, Bloomberg reports.

Both companies did not immediately respond to requests for comment regarding the report.

Blackstone has appointed Benjamin Sloss, a long-time Google executive, as the CEO of the new venture.

Google Cloud CEO Thomas Kurian stated that the project will help meet the growing demand for TPUs by providing organizations with additional ways to access computing power.

Analysts and investors note that Google captures a significant share of the new demand for AI computing thanks to its business tools and proprietary chips, which have attracted clients such as Anthropic.

"This is not the largest figure we've seen in headlines. But it is a high-quality bet on the stable growth of AI infrastructure,"

Blackstone ramps up AI investments

Blackstone has increased its investments in AI infrastructure, including data centers, power generation facilities, and transmission networks.

These investments are valuable as the AI boom forces operators to enter into long-term power supply agreements.

Blackstone President Jon Gray stated that the new partnership reflects the growing demand for AI infrastructure and the need for large-scale investment.

Spending by major tech companies on AI infrastructure, including data centers, is expected to exceed $700 billion in 2026.

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