Blackstone and Google on May 18 announced a joint venture to build a new US-based company that will provide cloud access to Google’s Tensor Processing Units (TPUs), as demand for AI computing infrastructure rises.
Blackstone said it will commit an initial $5 billion in equity capital to the venture, which aims to bring 500 megawatts (MW) of capacity online in 2027, with plans to expand over time.
The new company will offer data centre capacity, networking, operations, and access to Google Cloud’s TPUs through a compute-as-a-service model. Customers will be able to access the chips outside Google Cloud’s existing platform.
Google’s TPUs are custom AI chips designed for training and inference workloads. At Google Cloud Next 2026, the search giant unveiled its eighth-generation lineup, including the TPU 8t, optimised for training massive models, and the TPU 8i, for inference and agentic AI workloads that require rapid reasoning and multi-step execution.
The company said the processors have been used internally for more than a decade and currently support products including Gemini, as well as workloads for AI labs, financial firms, and high-performance computing applications.
Blackstone named Benjamin Treynor Sloss, a longtime Google executive involved in the company’s infrastructure and operations business, as Chief Executive Officer of the new venture.
“We see a generational opportunity to invest capital at scale, building AI infrastructure,” Jon Gray, President and COO of Blackstone, said in a statement. “This new company has enormous potential as it helps to meet the unprecedented demand for compute.”
Thomas Kurian, CEO of Google Cloud, said the partnership would “help meet growing demand for TPUs, which are optimised specifically for efficiency and performance in the AI era.”
The partnership comes as technology companies and infrastructure investors increase spending on AI data centres and computing hardware to support the expansion of generative AI services.
Blackstone said Google will provide hardware, including TPUs, along with software and related services to the venture. The company said the arrangement is intended to give enterprises more flexibility in running AI workloads on Google-designed chips.
Jas Khaira, Head of Blackstone N1, said the venture was designed to back infrastructure platforms tied to long-term AI demand. “Google’s TPUs, a decade in the making and foundational to the AI economy, are exactly the kind of platform BXN1 was built to back,” he said.
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