Blackstone and Google form JV to build multi-billion dollar AI infrastructure platform

Blackstone (NYSE:BX) and Alphabet Google (NYSE:GOOGL) have agreed to establish a new independent, U.S.-based technology company designed to expand enterprise access to artificial intelligence infrastructure and specialized semiconductor capacity.

The joint venture combines Blackstone’s position as the world's largest alternative asset manager and data center provider with Google's custom-designed artificial intelligence processors.

Under the terms of the agreement, Blackstone will make an initial commitment of $5 billion in equity capital from its managed funds, including its specialized BXN1 platform.

The newly formed entity will build and operate high-efficiency data centers, advanced networking infrastructure, and offer Google’s Tensor Processing Units (TPUs) through a dedicated compute-as-a-service model.

This offering establishes a secondary distribution channel for Google’s specialized chips, providing corporate customers alternative options to access TPU hardware outside of a direct Google Cloud environment.

Google’s TPUs are application-specific integrated circuits (ASICs) developed over more than a decade specifically to handle the training and inference workloads of large-scale AI models.

These proprietary chips currently power Google's core consumer products, including the Gemini conversational models, and support high-performance computing tasks for third-party AI laboratories and financial market firms.

The joint venture plans to bring its first 500 megawatts of data center power capacity online in 2027, with provisions to scale hardware deployments further over time.

Google will supply the hardware components, including the physical TPUs, alongside integrated software systems and technical operational support to facilitate the rollout.

Longtime Google infrastructure executive Benjamin Treynor Sloss, who spent over two decades developing and managing Google’s global server networks and data operations, has been appointed to lead the new enterprise as Chief Executive Officer.