Blackstone is reportedly planning to increase its investment in Google's TPU infrastructure to tens of billions of dollars. This move marks a significant expansion from the initial $5 billion equity commitment made in May 2026, when the companies launched a joint venture to provide compute-as-a-service.
The venture, known as Crux AI, aims to leverage Google's custom AI chips and cloud expertise alongside Blackstone's capital and infrastructure management. The original plan targeted 500 megawatts of data center capacity by 2027, with total projected investments reaching roughly $25 billion including leverage.
The updated strategy focuses on securing additional TPU capacity across multiple gigawatts of data center infrastructure. Crux AI competes directly with providers like CoreWeave, which rents out Nvidia GPU clusters. Blackstone, managing over $1 trillion in assets, provides the capital needed for these buildouts.
As of September 2026, the project has encountered operational challenges, including power availability issues, permitting delays, and construction setbacks. One planned data center project in Wyoming has been canceled entirely due to these complications.
