Blackstone and Google Form New Joint Venture for AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Joint Venture Formation: Blackstone and Google announced the creation of a new joint venture focused on providing data center capacity, operations, and Google Cloud's TPU compute services, with an initial investment of $5 billion to bring 500 MW online by 2027, highlighting both companies' commitment to AI infrastructure.
- Market Demand Response: The new company will offer customers access to TPUs beyond Google Cloud, similar to the cloud service model of CoreWeave, aiming to meet the surging demand for compute and further expand market share.
- Leadership Appointment: Blackstone appointed Google executive Benjamin Treynor Sloss as CEO of the new company, bringing over 20 years of experience in global infrastructure and operations, which is expected to drive rapid growth for the venture.
- Strategic Investment Opportunity: Blackstone's President Jon Gray stated that this investment represents a generational opportunity to build AI infrastructure at scale to meet unprecedented compute demand, reflecting the company's confidence in future market potential.
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Analyst Views on BX
Wall Street analysts forecast BX stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 116.830
Low
166.00
Averages
176.60
High
205.00
Current: 116.830
Low
166.00
Averages
176.60
High
205.00
About BX
Blackstone Inc. is an alternative asset manager. Its asset management includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds. Its Real Estate segment comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. Its Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically focused Corporate Private Equity funds, core private equity funds, an investment platform, and others. Its Credit & Insurance segment consists of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset-based credit. Its Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Industry Focus Shift: As concerns grow over unsecured loans to software companies, investors should pay closer attention to risks in these areas, particularly the market changes that AI may bring, ensuring robust investment decision-making.
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