Google and Blackstone to Establish AI Cloud Company, Challenging Nvidia with TPU

Blackstone to Provide $5 Billion in Initial Funding
Additional $25 Billion Investment Planned for Computing Resources
Google to Expand AI Infrastructure Base with Proprietary Chips

Google is partnering with the private equity fund Blackstone to jointly establish an artificial intelligence (AI) cloud company. Through this venture, Google is set to challenge the Nvidia-dominated AI infrastructure market.

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The Wall Street Journal (WSJ) reported on the 18th (local time) that there are plans to launch a new AI cloud company in the United States. Blackstone will invest an initial $5 billion (approximately 7.5 trillion won). The company also plans to support investment in computing resources worth about $25 billion, including future borrowings.

The data centers that will supply the new company’s cloud services will utilize Google’s proprietary AI semiconductor, the Tensor Processing Unit (TPU). The TPU is a semiconductor chip considered an alternative to Nvidia’s Graphics Processing Unit (GPU). Recently, Google has also unveiled new chips for AI inference and learning, accelerating the expansion of its AI semiconductor business.

Industry observers view this project as Google’s largest-scale attempt to begin external sales of its chips in earnest. Currently, many leading AI companies are using CoreWeave, which provides infrastructure based on Nvidia chips.

The joint venture aims to secure 500MW of data center capacity by 2027. This amount of power is comparable to the electricity needed to supply a medium-sized city.

Meanwhile, Blackstone has recently been actively expanding its investments in the AI sector. It has acquired data center companies QTS and AirTrunk, and has also invested in CoreWeave, Anthropic, and OpenAI. Blackstone Chairman Stephen Schwarzman recently stated, "The scale of data center assets we currently own or are building exceeds $150 billion."

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