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>>Google and Blackstone are launching a $5 billion-backed AI cloud venture designed to compete with CoreWeave.

Google and Blackstone are launching a $5 billion-backed AI cloud venture designed to compete with CoreWeave.

crypthub

7 days ago

Joint Venture Formation

Google and Blackstone are launching a standalone AI cloud company to sell Google’s proprietary TPU chips. Blackstone contributes $5 billion in equity for a majority stake, bringing total investment to $25 billion with leverage. The venture will be led by longtime Google executive Benjamin Treynor Sloss as CEO.

Strategic Goals and Leadership

The company aims to deliver 500 megawatts of computing capacity by 2027 and will integrate existing and under‑construction data centers from both partners. Blackstone’s AI arm BXN1, headed by Jas Khaira, backs the effort as its second deal after a $1.5 billion Anthropic joint venture. Blackstone controls over $1.3 trillion in assets and the largest private‑investor data‑center portfolio.

Market Impact and Future Outlook

The spin‑off lets Google market TPUs beyond Google Cloud, joining customers like Anthropic and Meta. Morgan Stanley forecasts TPU production reaching 7 million units by 2028, with each 500,000 sold generating roughly $13 billion. AI infrastructure spending across the sector is projected to exceed $700 billion in 2026, reinforcing the venture’s growth potential.