Google and Blackstone are reportedly pouring $5 billion into a new AI cloud venture, with the private equity giant taking a majority stake in the company.
The partnership, which has been in the works for months, will see Alphabet’s Google providing the tech, including its custom AI chips, hardware, software, and services. The deal is a significant one, with Blackstone set to contribute a staggering $5 billion in equity to the new venture.
According to insiders, the company aims to offer an end-to-end AI platform that will make it easier for businesses to develop and deploy AI applications. The platform will be built on Google’s existing AI infrastructure, including its popular Cloud AI Platform and Vertex AI services.
What’s in it for Google?
For Alphabet, the deal represents a chance to expand its presence in the AI cloud market while leveraging Blackstone’s expertise in building and scaling businesses. Google’s commitment to AI has been evident in recent years, with the company investing heavily in research and development of its AI chips and tools.
Blackstone’s majority stake
The $5 billion investment from Blackstone will give the private equity firm a significant stake in the new company, with the Wall Street Journal reporting that Blackstone will own more than 50% of the venture. This move is seen as a strategic play by Blackstone to tap into the growing demand for AI services in the enterprise market.
A new player in the AI cloud market
The partnership between Google and Blackstone is set to create a new player in the highly competitive AI cloud market. The company will face stiff competition from established players like Amazon Web Services and Microsoft Azure, as well as up-and-coming rivals like NVIDIA and Oracle.
What this means: Businesses will soon have another option for developing and deploying AI applications in the cloud, with a new player offering an end-to-end platform that integrates Google’s custom AI chips and hardware.
