The two have formed a joint venture to build a US-based AI compute-as-a-service business on Google’s TPUs, with $5bn of Blackstone equity, $25bn total deal value including leverage, and 500 MW of capacity targeted for 2027.
Blackstone and Google have formed a joint venture to build a US-based AI compute-as-a-service business on Google’s tensor processing units, Blackstone announced on Monday.
Blackstone will contribute $5bn in initial equity and take majority ownership, with the total deal value reaching roughly $25bn, including leverage. The first 500 MW of data-centre capacity is targeted for 2027.
The structural piece worth reading carefully is the TPU framing. The new business is a ‘TPU cloud’ rather than a general-purpose hyperscaler unit. The competitive frame is CoreWeave, the NVIDIA-aligned neocloud that went public in 2024 and now sits at the heart of the hyperscaler-adjacent AI-compute trade.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!The venture is, in effect, Google’s answer to CoreWeave: take the chip architecture Google has spent a decade refining, layer in Blackstone’s infrastructure-finance capacity, and sell capacity to enterprise customers who want non-NVIDIA silicon at compute-as-a-service economics.
