Blackstone (NYSE: BX) announced a joint venture with Google to establish a U.S.-based company offering data center capacity and Google Cloud's Tensor Processing Units as a compute-as-a-service platform, according to a company statement.

The alternative asset manager committed $5 billion in initial equity capital from managed funds to the venture. The partnership targets bringing 500 MW of capacity online in 2027, with plans for expansion thereafter.

The new company will provide customers access to Google's TPUs, custom chips designed for artificial intelligence training and inference. These processors have been in production for over a decade and support workloads for AI laboratories, capital market firms and high-performance computing applications.

Google will supply hardware including TPUs, software and services to the joint venture. Benjamin Treynor Sloss, a Google executive with over 20 years of experience in global infrastructure operations, was named CEO of the new company.

Blackstone manages over $1.3 trillion in assets and operates as a major global data center provider. The firm described the partnership as addressing demand for AI infrastructure and accelerated computing capabilities.

"This joint venture with Blackstone helps meet growing demand for TPUs, which are optimized specifically for efficiency and performance in the AI era," said Thomas Kurian, CEO of Google Cloud.

The venture will offer an alternative method for customers to access TPUs beyond Google Cloud's direct services. TPUs currently power Google's Gemini and various AI-driven products used by billions of users worldwide.