--- title: "$25 billion heavy bet! Google partners with Blackstone to create its own TPU cloud company, directly challenging CoreWeave" type: "News" locale: "en" url: "https://longbridge.com/en/news/286847811.md" description: "Google has reached an agreement with Blackstone Group to jointly establish an artificial intelligence cloud computing company, planning to invest $25 billion, aimed at competing with emerging cloud service providers like CoreWeave. The new company will utilize Google's self-developed seventh-generation TPU, expected to achieve 500 megawatts of computing power by 2027. Google executive Benjamin Treynor Sloss will serve as CEO to ensure seamless integration of the technology architecture" datetime: "2026-05-19T03:18:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286847811.md) - [en](https://longbridge.com/en/news/286847811.md) - [zh-HK](https://longbridge.com/zh-HK/news/286847811.md) --- # $25 billion heavy bet! Google partners with Blackstone to create its own TPU cloud company, directly challenging CoreWeave According to the Zhitong Finance APP, Alphabet Inc.'s Google (GOOGL.US) has reached an agreement with the world's largest alternative asset management company, Blackstone Group (BX.US), to jointly establish an artificial intelligence cloud computing company, aiming to compete directly with emerging cloud service providers like CoreWeave Inc. (CRWV.US) in this rapidly growing market. According to a statement released on Monday, Blackstone will initially provide $5 billion in equity capital for the project, becoming the controlling shareholder of the new company. According to insiders, if leveraged financing is included, the total investment scale will reach $25 billion. According to the plan, by 2027, the new company will have a computing capacity of 500 megawatts. The related data centers will use Google's self-developed seventh-generation Tensor Processing Unit (TPU) "Ironwood." This chip is officially set to be released in April 2025 and is Google's first TPU designed specifically for AI inference tasks, marking a key shift in its strategic focus from "training-oriented" to "scaling inference deployment." The Ironwood single-chip FP8 peak computing power reaches 4,614 TFLOPs, equipped with 192GB HBM3e memory, a memory bandwidth of 7.4 TB/s, and an energy efficiency ratio that is about twice that of the previous generation Trillium. The overall performance of the single chip can already be compared to NVIDIA's GB200, while the total cost of ownership has significant advantages: the internal single-chip TCO is about 44% lower than that of the GB200, and in external sales scenarios, it is about 30% to 41% lower. Google senior executive Benjamin Treynor Sloss will serve as the CEO of the new company. This personnel arrangement also conveys Google's determination—having an executive involved in the core technology architecture of the company personally lead the new business, ensuring seamless integration of full-stack capabilities from chips to data centers to cloud services. ## Boosting the Investment Boom in AI Computing Infrastructure The $25 billion joint venture scale is a microcosm of the global AI infrastructure investment frenzy. According to the latest research report from Morgan Stanley, the capital expenditure of the five major hyperscale cloud service providers is expected to be about $800 billion in 2026, further rising to about $1.16 trillion in 2027, as AI infrastructure investment moves toward the "trillion-dollar era." According to analyst research, in the first quarter of this year, the combined capital expenditure of North America's top four cloud providers (Amazon, Google, Microsoft, Meta) reached $131.63 billion, a year-on-year increase of 70.3%. The overall capital expenditure of the world's top nine cloud service providers is expected to reach $830 billion, a significant year-on-year increase of 79%. In this round of expansion, Blackstone's role is particularly crucial. This giant, managing assets exceeding $13 trillion, has long been heavily investing in the data center sector. As early as 2021, Blackstone acquired data center operator QTS; in 2024, it spent about AUD 16 billion to acquire Australian computing service provider AirTrunk, further consolidating its position as the world's largest data center provider Recently, Blackstone completed the IPO for its data center acquisition platform, Blackstone Digital Infrastructure Trust Inc., aiming to continuously acquire completed and leased data center assets. This platform is designed to acquire completed and leased data center assets that benefit from the AI boom. In this partnership with Google, Blackstone not only provides substantial capital but will also deeply participate in the design, construction, and operation of data centers—differentiating itself from the traditional "self-built and self-operated" model dominated by cloud vendors. ## Impact on "Neoclouds" Competitors The joint project between Google and Blackstone further elevates the investment enthusiasm for AI computing infrastructure to new heights. In recent years, Google has been continuously enriching its self-developed AI chip product matrix—from the first-generation TPU to the latest seventh-generation "Ironwood," each generation has achieved leaps in computing power, energy efficiency, and memory bandwidth. At the same time, Google is accelerating its efforts to secure data center capacity globally, including renovating existing facilities, participating in new projects, and acquiring long-term power and land resources through joint ventures. This series of layouts aims to meet the computing power consumption of internal large models like Gemini, as well as the explosive demand from external enterprise customers for AI training and inference services. The newly established company will directly compete with so-called "next-generation cloud service providers" (neoclouds) such as CoreWeave and Nebius Group NV. These companies focus on providing highly customized computing rental services for AI developers and enterprises, quickly capturing market share outside of traditional cloud vendors with flexible pricing and rapid deployment capabilities. It is noteworthy that most neoclouds have the capital backing of AI chip giant NVIDIA—NVIDIA not only provides a stable supply of GPUs but also deeply embeds itself in the growth paths of these companies through investment binding and priority supply. Google has become one of the biggest beneficiaries of this round of AI investment wave. 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