United States: Google, Blackstone form $25 billion AI venture
PUBLISHED May 19, 2026, 10:18 AM ET
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United States – Google and Blackstone Inc. have formed a joint artificial intelligence cloud business to expand large-scale computing capacity for generative AI workloads, the companies announced this week. Blackstone will contribute an initial $5 billion in equity and hold a majority stake in the new entity, with leverage lifting the total investment valuation to $25 billion. The venture will focus on building and operating specialized data centers that are planned to deliver 500 megawatts of computing capacity by 2027, targeting customers that require infrastructure to support complex AI models and enterprise cloud services. The new business will deploy Google’s custom-designed Tensor Processing Units, or TPUs, which are purpose-built semiconductor chips used to train and run advanced artificial intelligence models. By centering the facilities around TPUs, the venture aims to provide high-performance, AI-optimized cloud infrastructure rather than general-purpose data center capacity. Veteran Google executive Benjamin Treynor Sloss has been appointed chief executive officer of the joint enterprise, which positions Google and Blackstone to compete more directly in the rapidly growing AI infrastructure market against providers such as CoreWeave.
By Sarah Whitman | JQJO News
Timeline of Events
- This week Google, Blackstone announce joint venture
- This week Blackstone commits $5 billion equity
- This week Leverage lifts venture to $25 billion
- By 2027 Data centers target 500-megawatt capacity
- By 2027 Facilities deploy Google Tensor Processing Units
- Recently Benjamin Treynor Sloss named venture CEO
- Recently Venture targets growing generative AI workloads
- Recently Competitors include infrastructure provider CoreWeave
News Intelligence
- This venture means more power for AI workloads. It could speed up everything from weather predictions to medical research. If you use cloud services, expect more capacity and faster results. Keep an eye on your cloud service provider's updates.
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