Alphabet, Blackstone Launch $5B AI Cloud Venture Targeting 500MW Capacity
Alphabet teams with Blackstone on a $5 billion AI cloud joint venture targeting 500 megawatts of data center capacity by 2027 and offering compute-as-a-service with Tensor Processing Units. Oppenheimer highlights Alphabet among Magnificent Seven names poised for a technical breakout after a seven-month trading cap.
1. Alphabet and Blackstone Form AI Cloud Venture
Alphabet is partnering with Blackstone to establish a U.S.-based AI cloud business with an initial $5 billion equity commitment. The venture will provide data center capacity, operations, networking and access to Google Cloud Tensor Processing Units through a compute-as-a-service model.
2. Capacity Expansion and Timeline
The joint venture aims to bring 500 megawatts of data center capacity online by 2027, with potential for further expansion as demand for AI workloads continues to rise across industries.
3. Leadership and Service Model
Benjamin Sloss has been named CEO of the new company, which will leverage Google Cloud infrastructure and Tensor Processing Units to meet enterprise AI compute requirements and broaden access to custom AI hardware.
4. Technical Outlook for Alphabet Shares
Oppenheimer identifies Alphabet as one of the Magnificent Seven names showing firmer momentum after a seven-month trading cap, suggesting that buyers may support further share strength and a potential technical breakout.