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Blackstone, Google Form $5 Billion Venture for TPU Data Centers

The move signals Google’s shift to sell its AI chips outside Google Cloud, giving enterprises another path to scarce AI compute.

Overview

  • Blackstone and Google announced a U.S. joint venture that will use Google’s Tensor Processing Units, with Blackstone committing $5 billion and Google naming Benjamin Treynor Sloss to lead the new company.
  • The first data center targets a 2027 start and about 500 megawatts of capacity, with plans to expand after launch.
  • The venture will offer compute built on Google’s TPUs, which are Google‑designed chips for training and running AI models that compete with Nvidia and AMD graphics processors.
  • Blackstone is expected to hold a majority stake and may fund roughly $25 billion of further buildouts, according to the Wall Street Journal.
  • The effort follows reports that Meta plans to buy Google TPUs and aligns with Blackstone’s broader push in digital infrastructure, including a planned site in Germany and a joint venture with Anthropic.