Google and Blackstone have announced a joint venture to launch a U.S.-based AI infrastructure company. The unnamed business will provide a compute-as-a-service platform specifically for artificial intelligence workloads.
The new venture will be powered by Google’s tensor processing units (TPUs) and aims to compete with companies like CoreWeave Inc. in a burgeoning market. This collaboration adds to a wider boom in spending on the computing infrastructure necessary to underpin AI models and services.
The deal includes $5 billion in equity funding from Blackstone, which will receive a majority stake in the company. Including leverage, the total value of the deal is estimated at $25 billion. The joint venture targets a capacity of 500 MW by 2027.