tech
How tech analysts and investors reacted to Google and Blackstone teaming up on an AI company
The small fry are getting squeezed out," wrote one equities portfolio manager.
TL;DR
- Google and Blackstone are launching a new AI company to compete with cloud providers like CoreWeave and Nebius.
- Blackstone will invest $5 billion in the new US-based company.
- The company will offer data center capacity, operations, and Google's Tensor Processing Units (TPUs) as a service.
- Analysts see this as an opportunity for TPU alternatives as many competitors use Nvidia hardware.
- The move indicates a trend of hyperscalers commercializing proprietary chips and increased private capital funding AI infrastructure.
- The AI infrastructure market is becoming more vertically integrated, with compute acting as a strategic supply chain.