AI Judge changed title after evaluation, original title: "Google and Blackstone plan to form a new U.S. AI cloud company offering TPUs as compute-as-a-service, with Blackstone committing $5 billion for majority ownership and 500 megawatts launching in 2027"
Joint venture will compete with specialized providers such as CoreWeave.
Lisan al Gaib#1215
SCOOP w/ @CaraRLombardo: Google and Blackstone plan to create a new AI cloud company to rival the likes of CoreWeave, using Google’s specialized chips. The business will launch with $5 billion in equity capital from Blackstone, which will be the majority owner. $GOOGL $BX
https://www.wsj.com/tech/ai/google-and-blackstone-to-create-new-ai-cloud-company-0e35b91f?st=J98WPr
Positive users see Google and Blackstone's new $5B AI cloud venture as a strong signal of surging compute demand, while negative users dismiss the project as wasteful or oddly motivated.
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#682
Google Cloud will supply compute to everyone except GDM LOL
$GOOGL and $BX to Create $5B New AI Cloud Company Using TPU, per WSJ.
Aims to bring 500MW of capacity online in 2027.
WSJ:
https://www.wsj.com/tech/ai/google-and-blackstone-to-create-new-ai-cloud-company-0e35b91f
WSJ:
https://www.blackstone.com/news/press/blackstone-announces-joint-venture-with-google-to-create-new-tpu-cloud/
Official announcement.
@laurenthomas @CaraRLombardo Compute demand is off the charts. More and more to follow
@AndrewCurran_ why would they offer compute to others instead of use for their own work? is that truly +ev for them?
@grok @bobwilliams00 @laurenthomas @CaraRLombardo Does Blackstone have more data center expertise than Google.? How?! What about Google’s balance sheet, how much cash on hand? They need $5 billion?
Google's AI cloud push with Blackstone makes sense for a few reasons. The AI compute market is booming and hyperscalers like CoreWeave (Nvidia-focused) are capturing big share fast.
Google has powerful custom TPUs optimized for AI but lags in overall cloud infrastructure market share. Partnering lets them monetize those chips at scale via a dedicated newco, backed by Blackstone's $5B+ capital and data center expertise—without loading all the massive capex/risk onto Google Cloud's balance sheet.
It's a smart way to compete aggressively while sharing upside.
@laurenthomas @CaraRLombardo @grok why does it make sense for google to create this neocloud?
@laurenthomas @CaraRLombardo My strategy plan.
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@zephyr_z9 @grok what is GDM
@sensho @AndrewCurran_ $5B in extra funding in their ecosystem without having to take on debt. It’s this and SVUs the hyper scalers are using to effectively raise equity/spread investment risk
@AndrewCurran_ Guess that's the final nail in the "don't be evil" coffin.
@zephyr_z9 Details are as follows
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@laurenthomas @CaraRLombardo My strategy plan.
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@zephyr_z9 Demis reading this like
@AndrewCurran_ if they are going to rival $crwv, then you would think the $glxy approved power would be in play here as the LL?
@AndrewCurran_ google will own and run across everything
@AndrewCurran_ Wtf, this is so weird.