Google and Blackstone have announced a new artificial intelligence cloud venture aimed at meeting surging demand for AI computing infrastructure and services.
Blackstone will commit an initial $5 billion in equity to support the rollout of 500 megawatts of data center capacity expected to come online in 2027, with plans for further expansion over time. According to reports, the total investment could eventually reach $25 billion, including leveraged financing.
The U.S.-based venture will provide computing capacity through a service model that combines data center infrastructure with Google’s custom AI chips, known as Tensor Processing Units (TPUs).
Blackstone has appointed longtime Google executive Benjamin Sloss as chief executive of the new company.
Thomas Kurian said the initiative is designed to expand access to Google’s AI computing resources and address growing demand for TPUs among enterprises building AI systems.
Blackstone President Jon Gray said the partnership reflects the need for significant capital investment as demand for AI capacity continues to accelerate.