By Adam Levy, The Motley Fool
Publication Date: 2026-05-24 21:20:00
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) CEO Sundar Pichai shared some interesting news during the company’s first-quarter earnings call. Google will start to deliver its custom AI accelerator chips, Tensor Processing Units (TPUs), to a select group of customers for their own data centers. The company has already signed a deal to sell chips to Anthropic and has a tentative agreement to sell directly to Meta Platforms. Now it has a third customer.
Google is partnering with Blackstone on a joint venture to build a new neocloud compute-as-a-service company. Blackstone will provide $5 billion of capital, and Google will provide its TPUs and software. The move is another step in taking market share from Nvidia, but it presents a real competitive threat to neocloud leaders CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS).
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Why is Google building a new cloud computing business?
Google Cloud is already the third-largest cloud computing platform in the world and growing quickly. Alphabet is spending tens of billions of dollars adding capacity to it every quarter. Investors may look at the new joint venture as superfluous.
But partnering with Blackstone provides additional capital while enabling the…
