Blackstone has partnered with Google to create a new AI infrastructure business that will provide data center capacity and access to Google's Tensor Processing Units on a compute-as-a-service basis. The joint venture represents a major push into the growing demand for AI computing power.

Blackstone will commit $5 billion in equity through its managed funds to support the venture. The platform aims to bring its first 500 megawatts of capacity online by 2027, with plans to scale substantially beyond that initial deployment. Google will supply the underlying TPU hardware alongside software.

The partnership leverages Blackstone's position as the largest global data center platform among financial sponsors, with $1.3 trillion in assets under management. By offering compute-as-a-service, the venture targets enterprises seeking access to AI infrastructure without massive upfront capital investments in specialized hardware.

This move reflects the intensifying race for AI infrastructure as companies compete for computing resources. The joint venture gives Google a new channel to monetize its TPU technology while Blackstone gains exposure to the AI boom through its infrastructure expertise.