Google and Blackstone form joint venture to offer AI compute-as-a-service, with Blackstone committing $5 billion in equity and first 500 megawatts expected online in 2027

Google will supply tensor processing units (TPUs—chips built for training and running AI networks) along with hardware, software and services; Blackstone brings equity capital, project debt, power procurement and institutional relationships. Benjamin Treynor Sloss, a longtime Google infrastructure executive, will run the venture.

The deal expands the market for Google's TPUs as an alternative to Nvidia's graphics processing units, which accounted for a 92% share of the market as of Q3 2025 according to Jon Peddie Research. Anthropic announced in October it would expand its use of Google's TPUs to as many as 1 million chips in a deal worth "tens of billions of dollars," bringing more than a gigawatt of capacity online in 2026.

Blackstone moves from lender to equity investor in compute infrastructure. Previously, in 2023 Blackstone joined Magnetar Capital in arranging a $2.3 billion debt facility for CoreWeave, and in 2024 provided a $7.5 billion package to expand CoreWeave's AI infrastructure.