Google Just Shared Bad News for Nvidia, and Even Worse News For CoreWeave and Nebius
Summary
Google will start selling its Tensor Processing Units (TPUs) to select customers and is partnering with Blackstone to form a well-capitalized neocloud compute-as-a-service company, with Blackstone providing $5 billion and Google supplying TPUs and software. The joint venture plans to deploy 500 MW of TPU capacity by next year and aims to scale quickly, leveraging vertical integration and Blackstone's real estate and energy sourcing. That strategy could erode Nvidia's dominance in AI accelerators and put pricing pressure on neocloud providers CoreWeave and Nebius by undercutting future business. CoreWeave and Nebius have sizable contracted backlogs and growing capacity, but the new entrant raises uncertainty around pricing, capacity allocation, and competitive dynamics in AI cloud compute.
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