Google and Blackstone have formed a $5 billion joint venture to build US-based AI cloud and data centre infrastructure, with Google offering access to its proprietary Tensor Processing Unit (TPU) chips through the new entity. The deal positions the venture as a direct alternative to Nvidia GPU-based compute, targeting enterprise customers who need large-scale AI processing power. Three sources confirm the partnership structure, though the precise revenue model and customer targets remain undisclosed.
This deal is most directly bearish for Nvidia, whose GPU dominance in AI cloud compute now faces a well-capitalized, vertically integrated competitor backed by two of the world's largest capital allocators. For Google (Alphabet), it's a potential revenue unlock — monetizing TPU infrastructure that previously sat largely internal. Blackstone gains direct exposure to AI infrastructure demand without building from scratch, which is bullish for its alternative asset positioning.
Upcoming Alphabet Q2 2025 earnings call (expected late July): listen for TPU commercialization commentary. Nvidia GTC or next earnings release for any response to competitive pressure. Any Blackstone investor day updates on infrastructure deployment timelines.
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