A partnership between Google and Blackstone will give rise to a new company initially valued at US$ 25 billion. In response to a rapidly expanding technology market, a Alphabet, Google's parent company, agreed to a new project focused on cloud computing and artificial intelligence. The proposal is to enter the “neoclouds” market, increasing competitiveness against companies like CoreWeave and Nebius.
The novelty aims to achieve computational capacity of 500 megawatts up to 2027. According to a statement released on Monday (18), the project already foresees an initial contribution of US$ 5 billions from Blackstone itself, majority shareholder of the new company. The total investment of this partnership must reach US$ 25 billion, according to a source close to the matter.
The data centers will use artificial intelligence chips developed by Google itself, called tensor processing units (TPUs). These chips were created to process AI tasks faster and more efficiently, especially in training and operating intelligent models. Blackstone manages more than US$ 1,3 trillion in assets and is currently the largest global provider of data centers.
Amid the accelerated advancement of artificial intelligence, Google is already emerging as one of the biggest beneficiaries of the wave of investments in the sector. Revenues from its cloud computing division accelerate sharply, while its own AI services gain strong adoption among consumers. In this context, the new company has already defined the CEO, who will be Benjamin Treynor Sloss, veteran Google executive.
Response to the global AI boom
The partnership represents a movement in response to the global boom in investment in computing infrastructure, basis of artificial intelligence models and services. Given the great demand from internal users and external customers, Google had already been expanding its line of AI chips and the capacity of its data centers to support all this increase.
Competing neocloud companies use Nvidia GPUs and infrastructure, with AI-driven graphics processing units. Earlier this month, Blackstone launched the initial public offering of the Blackstone Digital Infrastructure Trust, a fund created to acquire ready-made and rented data centers.
