Alphabet and Blackstone Forge New AI Cloud Venture

Deep News08:11

According to informed sources, Alphabet Inc., the parent company of Google, and Blackstone Group LP are planning to jointly establish a new artificial intelligence cloud computing company. This venture will leverage Google's proprietary in-house developed chips and aims to compete with industry peers such as NVIDIA. The sources indicated that the two parties intend to form this as-yet-unnamed company in the United States, with Blackstone providing $5 billion in equity capital to secure a majority stake. The formal announcement of this cooperative agreement is scheduled for later on Monday.

This partnership represents Alphabet's largest strategic move to date in commercializing and selling its proprietary chips externally. It is also expected to intensify its competition with NVIDIA, the leading enterprise in the AI computing power sector. Sources revealed that the new company plans to achieve an operational computing power capacity of 500 megawatts by 2027. This scale of power is roughly equivalent to the electricity demand of a medium-sized city. The company also intends to significantly expand its computing power capacity further in the subsequent phases.

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