Blackstone and Google Announce $5B Venture for AI Infrastructure
Blackstone, the world’s largest private owner of data centers, announced a groundbreaking $5 billion investment in a joint artificial intelligence infrastructure venture with Google on Monday, May 19, 2026.
The newly formed company aims to provide data center capacity, operations, networking, and access to Google Cloud’s Tensor Processing Units (TPUs) as a compute-as-a-service model. Blackstone is committing an initial $5 billion in equity capital, with the total investment potentially reaching $25 billion when including leverage. The partnership has set a goal to bring the first 500 megawatts of compute capacity online by 2027, and has plans to scale significantly beyond that timeframe.
Leading the venture will be Benjamin Treynor Sloss, a longtime Google infrastructure executive. “We see a generational opportunity to invest capital at scale building AI infrastructure,” said Jon Gray, President and COO of Blackstone. “This new company has enormous potential as it helps to meet the unprecedented demand for compute.”
The deal positions Google to compete more directly with the Nvidia-dominated GPU infrastructure by offering its proprietary TPU chips through third-party data centers. Major technology firms are projected to spend over $700 billion on AI infrastructure in 2026 alone, highlighting the massive market opportunity.
Source: CNBC