Google, Blackstone launch AI cloud venture with $5 billion initial investment

New York: Alphabet’s Google and Blackstone said Monday they will form an artificial intelligence cloud business venture to meet surging demand for AI computing services.

Blackstone, the world’s largest alternative asset manager, will commit an initial $5 billion in equity to the venture. The investment will fund 500 megawatts of new data centre capacity slated to come online in 2027, with further expansion planned over time.

The tie-up pairs Google’s cloud and AI infrastructure expertise with Blackstone’s capital and real estate portfolio. The new venture aims to supply large-scale computing capacity to enterprises building and deploying AI models.