Blackstone Commits $5 Billion to Google TPU Venture as 500 Megawatts Target 2027
Updated
Updated · CNBC · May 19
Blackstone Commits $5 Billion to Google TPU Venture as 500 Megawatts Target 2027
10 articles · Updated · CNBC · May 19
Blackstone said it will put $5 billion of equity into a new U.S. AI infrastructure company with Google, which will provide its Tensor Processing Units for the buildout.
500 megawatts of compute capacity are slated to come online by 2027, with Blackstone saying the venture can scale well beyond that to meet surging demand for AI compute.
Benjamin Treynor Sloss, Google's former chief programs officer, will lead the unnamed company; Blackstone did not disclose ownership, though the Wall Street Journal said it would hold a majority stake.
The deal deepens Blackstone's push across AI infrastructure after a similar Anthropic venture this month and gives Google another route to expand TPU use while reducing dependence on Nvidia GPUs.
Alphabet and Blackstone shares each rose about 1% premarket, underscoring investor focus on the widening contest between in-house AI chips and Nvidia's dominant hardware.
Facing multi-year grid delays, how will the Google-Blackstone venture power its massive AI cloud ambitions by 2027?
As data centers consume city-sized power, will local communities pay the price for the global AI race?
Is Blackstone’s $5 billion AI infrastructure bet fueling a speculative bubble reminiscent of the historic railroad boom?
Google-Blackstone $5 Billion AI Cloud Partnership: A New Powerhouse in Enterprise AI Infrastructure
Overview
Google and Blackstone are joining forces to create a new AI cloud company, aiming to become a major player in the fast-growing AI cloud market. Blackstone will invest $5 billion and hold a majority stake, while Google will provide its advanced Tensor Processing Units (TPUs), including a new AI-specific processor launched in April 2026, along with essential software and services. This partnership aligns with Google’s focus on expanding its enterprise business and could create the largest new customer channel in Google Cloud’s history. As of May 2026, the venture is still in advanced negotiations and remains unnamed.