Google and Blackstone are partnering to launch a new AI-focused cloud company aimed at expanding data center capacity and providing access to Google’s custom AI chips.

Blackstone plans to invest $5 billion initially and will likely hold a majority stake in the venture, which is expected to bring its first major capacity online by 2027.

The company will compete in the growing market for AI computing infrastructure, where demand for processing power continues to surge.

The deal reflects a broader wave of massive investment in AI data centers by both tech companies and private equity firms, Yahoo Finance has reported.

It also highlights intensifying competition among major cloud providers and chipmakers as AI infrastructure becomes a key industry battleground.