Google and Blackstone plan to invest $25B in US AI cloud company to challenge CoreWeave and other computing power providers

Google and Blackstone, the world's largest private equity group, plan to establish a new AI cloud company in the US with a total computing investment of about $25 billion. Blackstone will first invest $5 billion in equity capital, and the total investment will expand to $25 billion with leverage later. The company's name hasn't been disclosed yet; its core goal is to challenge AI computing power providers like CoreWeave using Google's self-developed chips and cloud capabilities.

This collaboration is Google's largest external chip commercialization attempt to date. The outside world has long been concerned about whether Google would push its TPU (Tensor Processing Unit) to the external market on a large scale. The new company plans to launch 500 MW capacity (equivalent to the electricity demand of a medium-sized city) in 2027, with further expansion later, and has locked in some data centers (including under-construction facilities).

This partnership will intensify the direct competition between Google and NVIDIA. As the computing power demand for training and running advanced AI models surges, new cloud computing power companies are emerging rapidly, and market competition is heating up. Blackstone, an active investor in AI infrastructure, has over $150 billion in data center assets and $160 billion in potential new projects.