Google, Blackstone Launch TPU Cloud

Google is making a bold move to break open the AI infrastructure bottleneck, teaming up with Blackstone to launch a $5 billion company that will sell access to Google’s custom Tensor Processing Units (TPUs) and data center capacity “as a service.” The goal: put 500 megawatts online by 2027, positioning as a real alternative to Nvidia-powered upstarts like CoreWeave. With longtime Google exec Benjamin Treynor Sloss at the helm, the venture aims to unlock TPU access outside of Google Cloud, but the real question is whether this shift will relieve supply pressure or simply add another queue—especially with power and interconnection still the biggest chokepoints.

Here’s the catch: if TPUs can be bought outside of Google Cloud, it sets up a tug-of-war over high-margin platform revenue. The new setup could broaden Google’s reach but risks fragmenting the customer experience and shifting profits away from its core cloud business. Meanwhile, Google is going all-in on bringing agentic AI—AI that can act on behalf of users—into real enterprise and Android workflows, rolling out new capabilities like Gemini 3.5 Flash and expanding partnerships to reach over a billion devices. The stakes: whoever controls both the chips and the agents could define the next phase of enterprise AI adoption, but execution and regulatory scrutiny will be key.

Featuring analysis and numbers from ESG Dive, plus insights from Google Cloud CEO Thomas Kurian and CRO Matt Renner.

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