Smart people react to Google and Blackstone teaming up on an AI company

• Google and Blackstone announced a new AI company to challenge CoreWeave and Nebius.
• The new AI company will leverage Google’s TPUs to offer enhanced compute options for businesses.
• Here’s what smart people are saying about the new deal.

Gilles Drieu, former director of engineering at GoogleDrieu also said the AI stack is becoming more vertically integrated, spanning chips, inference, and energy infrastructure.

“Compute is starting to behave like a strategic supply chain,” he wrote on X.

Jason Kotik, portfolio manager at Rockefeller Global Investment Management

“‘Welcome to Hell’ is the perfect way to put it,” wrote Kotik, an equities portfolio manager at Rockefeller Global.

“Google and Blackstone joining forces means every other AI company just got put on notice,” Kotik said on X. “The big players are consolidating power fast, and the small fry are getting squeezed out.”