On Monday, Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and Blackstone Inc. (NYSE:BX) said they are forming a new artificial intelligence cloud and data center venture in the U.S.



<h2>Google And Blackstone Launch AI Infrastructure Venture</h2>



In an announcement release, Blackstone said it will initially invest $5 billion in equity to help bring 500 megawatts of data center capacity online by 2027, with plans for future expansion.



The total investment value could eventually reach $25 billion, including leverage, the Wall Street Journal reported, citing people familiar with the matter.



The new company will offer data center capacity alongside Google's custom-built AI chips, known as Tensor Processing Units, or TPUs, through a compute-as-a-service model.



The setup is designed to help businesses access high-powered AI computing resources without building their own infrastructure.



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<h2>AI Data Centers And TPU Demand Continue To Surge</h2>



The partnership comes as demand for AI computing capacity continues to soar amid the rapid adoption of generative AI tools and enterprise AI applications.



Big Tech companies are expected to spend more than $800 billion on AI infrastructure in 2026 alone, including data centers, networking equipment and advanced semiconductors.



The venture will be led by Benjamin Treynor Sloss, a longtime Google executive who has spent more than two decades overseeing the company's global infrastructure and operations.



<h2>Blackstone Fundraising, Google TPU Push</h2>



Last week, it was reported that Blackstone was raising capital for its third private equity fund. The fund plans to invest in eight to 10 companies with deal sizes ranging between $800 million and $1 billion.



Meanwhile, Google is continuing to promote its TPUs as a competing option to Nvidia Corp's (NASDAQ:NVDA) market-leading GPUs, even as it still provides Nvidia-powered services to its cloud customers.



Price Action: Alphabet Class A shares closed up 0.04% at $396.94 on Monday, while Alphabet Class C slipped 0.05% to $393.11, with both stocks rising in after-hours trading. Blackstone closed down 0.72% at $117.04 during the regular hours and slipped another 0.14% in after-hours trading to $116.88, according to Benzinga Pro.



According to Benzinga Edge Stock Rankings, BX is placed in the 82nd percentile for Quality, although the stock has been trending negatively across the short, medium and long-term.



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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



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Photo Courtesy: Markus Mainka on Shutterstock.com

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Alphabet and Blackstone are launching a $5 billion AI infrastructure venture to meet the growing demand for AI computing power. The initiative aims to bring 500 megawatts of data center capacity online by 2027, with potential total investments reaching $25 billion. The venture will provide data center capacity and Google's custom AI chips through a compute-as-a-service model, catering to businesses needing high-powered AI resources.

- Alphabet Inc. and Blackstone Inc. are forming a new AI cloud and data center venture, with Blackstone initially investing $5 billion to bring 500 megawatts of data center capacity online by 2027.  
- The total investment could reach $25 billion, leveraging Google's AI chips through a compute-as-a-service model, meeting the rising demand for AI computing as companies increasingly adopt generative AI tools.  
- The venture will be overseen by Benjamin Treynor Sloss, a Google executive with extensive experience in global infrastructure and operations.

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Google-Blackstone AI Venture Targets Exploding Demand For Compute Power With $5 Billion Initial Data Center Investment