Google and Blackstone to Launch $5 Billion AI cloud venture in strategic partnership
google and the US alternative asset manager Blackstone are set to announce a major Joint Venture on May 18 to establish a new Artificial Intelligence cloud company in the United States. This strategic partnership marks a significant step in expanding the avAIlability of Google’s proprietary AI hardware.
Under the terms of the agreement, Blackstone will invest US$5 billion in equity to SECure a majority stake in the new entity. In return, Google will supply the venture with its cutting-edge Tensor Processing Units (TPUs), alongside essential software and cloud services.
The new company aims to challenge existing AI infrastructure providers by offering robust computing power tailored for advanced AI models. Benjamin Treynor Sloss, a veteran Google executive with extensive experience in technical infrastructure, is expected to lead the venture as Chief Executive Officer.
This collaboration comes amidst an unprecedented surge in AI Infrastructure spending. Major tech giants, including Alphabet, Amazon, Microsoft, and Meta, are projected to collectively spend over US$700 billion on AI Development and infrastructure this year alone.
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