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Alphabet Inc
Google and Blackstone join forces to topple Nvidia's AI Cloud Dominance
Alphabet’s Google and Blackstone are forming a new AI cloud company, offering compute-as-a-service.
Using Google's Chips.
The joint venture will create a new U.S.-based company offering data center capacity and Google’s Tensor Processing Unit (TPU) chips as a “compute-as-a-service” offering, the companies said.
Alphabet's play for data center dominance is a blow to the so-called Neo Cloud providers such as CoreWeave and Nvidia, which have benefited from the artificial boom and demand for cloud computing power.
Both CoreWeave and Nebius were down about 5% on the news
Blackstone said it would make an initial commitment of $5 billion in equity capital with plans to bring the first 500 megawatts of capacity online in 2027 and then “scale significantly over time.”