Investing.com — Coreweave and Nebius shares dropped 4.5% Tuesday morning following Blackstone’s announcement of a joint venture with Google to create a new artificial intelligence cloud company using Google’s Tensor Processing Units.
The new U.S.-based company will offer data center capacity, operations, networking, and Google Cloud’s TPUs as a compute-as-a-service offering, providing customers an alternative to accessing cloud TPUs beyond Google Cloud. The venture poses direct competition to existing AI infrastructure providers including CoreWeave.
Blackstone is making an initial commitment of $5 billion in equity capital from funds it manages. The company expects to bring the first 500 megawatts of capacity online in 2027, with plans to scale significantly thereafter.
Google will supply hardware, including TPUs, as well as software and services to the new company. The tech giant’s TPUs are custom chips purpose-built for AI and optimized for training and inference of advanced AI models. The chips have been developed and deployed in production for over a decade and power workloads for AI labs, capital market firms, and companies running high-performance computing applications.
Benjamin Treynor Sloss, a Google executive with over 20 years of experience building and operating Google’s global infrastructure and operations, will lead the new company as CEO.
“We see a generational opportunity to invest capital at scale building AI infrastructure,” said Jon Gray, President and COO of Blackstone.
Thomas Kurian, CEO of Google Cloud, said the joint venture helps meet growing demand for TPUs, which are optimized for efficiency and performance in the AI era.
Blackstone manages over $1.3 trillion in assets and is the largest global provider of data centers.
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