Blackstone Commits $5B to Google AI Infrastructure Venture

Blackstone invests $5 billion in equity capital in a new U.S.-based artificial intelligence infrastructure company with Google. The New York asset manager announced the deal on Monday. The venture will run on Google’s tensor processing units, custom chips designed for AI workloads.

The company plans to deliver the first 500 megawatts of compute capacity by 2027 and expand significantly afterward. Blackstone, the world’s largest private owner of data centers, said the venture will address surging demand for compute.

Jon Gray, Blackstone’s president and chief operating officer, said in a statement: “This new company has enormous potential as it helps to meet the unprecedented demand for compute.” Benjamin Treynor Sloss, formerly Google’s chief programs officer, will lead the unnamed venture. A Google spokesperson declined to comment on whether Google will keep a direct leadership role.

The Wall Street Journal first reported the joint venture. According to sources familiar with the matter, Blackstone will hold a majority stake, though the firm did not disclose ownership details. The Journal also reported that the venture has already identified likely data center sites, some under construction.

Blackstone manages more than $1.3 trillion in assets and has ramped up investments across the AI ecosystem, including a similar venture with Anthropic earlier this month. Shares of Alphabet and Blackstone rose about 1 percent in pre-market trading on Tuesday.

The deal highlights the intensifying competition between Google and Nvidia in AI hardware. Google’s TPUs serve as its alternative to Nvidia’s dominant GPUs. While Google still uses Nvidia chips in its cloud, it is working to reduce reliance on the company led by Jensen Huang. Other hyperscalers, including Amazon Web Services, have pursued similar in-house chip strategies. Google was an early adopter of this approach.