Google and Blackstone are launching a joint venture to offer AI compute-as-a-service built on Google’s Tensor Processing Units, with Blackstone committing an initial $5 billion and expecting 500 megawatts online by 2027. The move underscores Wall Street’s rush into the hard assets behind the AI boom, as tech giants project more than $700 billion in capex this year and private investors eye a data-center buildout that Ares estimates at $900 billion. The partnership expands customer access to Google’s TPUs—similar to CoreWeave’s model—and intensifies competition between Nvidia and hyperscalers such as Google and Amazon, which is growing revenue from its in-house Trainium chips. Blackstone, already owner of QTS and investor in Anthropic, OpenAI and SpaceX’s xAI, is poised to be the venture’s majority shareholder, signaling the mounting role of private capital in AI infrastructure.
Related article:
