Google and Blackstone have announced a major joint venture in AI cloud computing. The new company will provide data center capacity and computing services. Blackstone will make an initial equity investment of $5 billion. The venture aims to meet the growing global demand for AI computing power. This partnership signals that Wall Street is moving deeper into AI infrastructure.
The venture will offer Google's custom Tensor Processing Units as a service. These specialized chips are designed to train and run advanced AI models. The first 500 megawatts of computing capacity are expected to come online by 2027. According to reports, the total investment could eventually reach $25 billion. Blackstone will be the majority shareholder in the new company.
A longtime Google executive, Benjamin Treynor Sloss, has been appointed as CEO. The new company will compete with neocloud providers like CoreWeave and Nebius Group. Enterprise spending on cloud infrastructure reached $129 billion in early 2026. This represents a $35 billion increase compared to the same period last year. The rapid growth is largely driven by demand for generative AI services.
This deal also highlights the rivalry between Google and Nvidia in AI hardware. Google has developed its own TPU chips to reduce its reliance on Nvidia. Other major technology firms, such as Amazon, are pursuing similar strategies. If AI demand continued to grow, this venture would likely expand significantly. Industry analysts believe this collaboration could reshape how companies access AI computing.
