Google parent Alphabet has agreed to create an artificial intelligence cloud computing business in partnership with Blackstone in a bid to compete with the likes of CoreWeave in a rapidly expanding market.
The project will feature an initial investment of US$5 billion in equity from Blackstone, which will be the majority shareholder of the new company, according to a statement released this Monday. Considering financial leverage, the total investment will reach US$25 billion, according to a person familiar with the matter.
The goal is to reach, by 2027, a computing capacity equivalent to 500 megawatts. The data centers will use artificial intelligence chips developed by Google itself, called tensor processing units (TPUs), designed to train and operate AI models. Veteran Google executive Benjamin Treynor Sloss will take over as CEO of the new company.
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The movement reinforces the global boom in investments in computational infrastructure, the basis of artificial intelligence models and services. Google has been expanding its lineup of AI chips and seeking additional data center capacity to accommodate them in response to increased demand from both internal users and external customers.
The new company will compete with so-called “neoclouds” such as CoreWeave and Nebius, which offer computing power to AI service providers. Many of them are supported by Nvidia and use the manufacturer’s GPUs, graphics processing units focused on artificial intelligence.
Earlier this month, Blackstone held the initial public offering of Blackstone Digital Infrastructure Trust, a data center acquisition vehicle created to buy already built and leased properties that benefit from the artificial intelligence boom.
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Blackstone, which manages more than US$1.3 trillion in assets, presents itself as the largest global provider of data centers. The manager acquired data center operator QTS in 2021 and purchased Australian computing company AirTrunk in 2024.
Google is already emerging as one of the biggest beneficiaries of the wave of investments in artificial intelligence. Revenues from its cloud computing division accelerate sharply, while its own AI services gain traction among consumers.
© 2026 Bloomberg L.P.
