KKR and Blackstone discuss Google AI access for portfolio companies
Updated
Updated · The Information · May 5
KKR and Blackstone discuss Google AI access for portfolio companies
9 articles · Updated · The Information · May 5
At the Milken Institute conference in Beverly Hills, KKR executive Pete Stavros said AI was lifting earnings across its portfolio by about 5%, not 50%.
The talks with Alphabet would give portfolio companies access to Google’s AI models as buyout firms pursue automation in legal, healthcare, insurance and other white-collar sectors.
Private equity groups also see AI as a way to revive software investments made during the pandemic, though executives said adoption remains bespoke and difficult to scale.
As private equity bets billions on AI, will it create unprecedented wealth or trigger the next major economic crisis?
AI is set to automate 90% of office tasks. What future awaits the millions of professionals whose jobs are on the line?
How Google and Private Equity Firms Are Reshaping Enterprise AI Adoption in 2026
Overview
In 2026, Alphabet (Google) is negotiating portfolio-wide AI agreements with major private equity firms like Blackstone and KKR to provide their portfolio companies streamlined access to Google's AI models and cloud infrastructure through master agreements. This approach bypasses slow individual procurement, accelerating AI deployment and creating a new default Google Cloud environment, which favors Google-aligned AI solutions and challenges competitors. Private equity firms are also investing heavily across the AI stack and infrastructure to boost portfolio value. These partnerships address Google's market penetration challenges and enable PE firms to embed AI as a core value driver, reshaping enterprise AI adoption and establishing new industry standards.