Google will supply custom AI chips to a new cloud-compute joint venture backed by $5 billion from Blackstone.
Alphabet announced a joint venture with Blackstone to build a cloud-compute company focused on AI workloads, backed by $5 billion in capital. Google will provide its Tensor Processing Units (TPUs) and software, targeting market share from Nvidia and neocloud rivals CoreWeave and Nebius.
Google Cloud is already the third-largest cloud platform globally, with Alphabet investing billions quarterly in capacity. The partnership aims to drive TPU adoption through price competition and dedicated AI data centers, securing another major customer for its chips.
The deal includes agreements to sell TPUs to Anthropic and Meta, expanding Google’s reach in AI infrastructure beyond its existing cloud business.