Blackstone Inc. (NYSE:BX) stock is trading higher by 0.82% during Tuesday’s premarket session as investors digest joint venture with Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google around AI-focused cloud infrastructure, even with U.S. index ETFs pointing lower before the bell.

Blackstone on Monday announced a joint venture with Google to launch a U.S.-based company focused on artificial intelligence infrastructure and cloud computing services powered by Google Cloud’s Tensor Processing Units, or TPUs.

The new company will provide data center capacity, networking, operations, and TPU-based compute-as-a-service offerings. Customers will be able to access Google’s AI chips outside the traditional Google Cloud platform.

Blackstone Commits $5 Billion

Blackstone said it will make an initial equity commitment of $5 billion through funds managed by the firm. The venture aims to bring its first 500 megawatts of capacity online in 2027, with plans for further expansion over time.

Google will provide hardware, including TPUs, along with software and related services. The companies said the partnership is designed to meet rising demand ...