Google and Blackstone Launch AI Cloud Company
In brief
- Google and Blackstone are launching an artificial intelligence cloud company.
- This company will provide data center capacity and Google Cloud's Tensor Processing Units.
- The business will give customers another way to access Google’s TPUs.
- Blackstone will make an initial $5 billion equity investment.
- Major tech firms expect to spend over $700 billion this year on capital expenditures for the AI build-out.
- The deal marks Blackstone's latest push into AI infrastructure.
- Blackstone already owns major North American data center company QTS.
- The company’s first 500 megawatts of power are expected to come online by 2027.
- Google and Blackstone will now work together to meet the growing demand for AI computing power.
Terms in this brief
- Tensor Processing Units
- Specialized chips designed by Google to accelerate machine learning and AI computations, particularly for training large neural networks. They are part of Google Cloud's offerings and are used to provide high-performance computing resources for AI tasks.
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