In a strategic move that could reshape the AI landscape, Google and Blackstone are collaborating to create a new AI cloud venture aimed at leveraging Google’s advanced custom chip technologies. The Wall Street Journal reported that Blackstone is making a hefty $5 billion equity commitment while maintaining a majority stake in the venture. This partnership has ignited a flurry of interest among analysts trying to pinpoint who holds the real leverage in the increasingly competitive AI development space, particularly regarding the growing importance of electricity supply.
A recent research note from investment bank Bernstein reveals that Bitcoin miners may be the unexpected beneficiaries in this scenario. Many of these miners have amassed a significant energy capacity, totaling over 27 gigawatts planned solely in the United States. This substantial energy resource is becoming critical as Silicon Valley races to construct next-generation AI data centers.
One of the major challenges in this race is securing adequate power, a process that can take over four years in many states to acquire just a single gigawatt of grid-connected power. This energy bottleneck has prompted large tech companies, including hyperscalers and new cloud operators, to look beyond traditional data center developers for solutions.
In response, Bitcoin mining companies are rebranding themselves as AI infrastructure providers. Bernstein’s analysis indicates that the sector has revealed more than $90 billion in AI-related contracts for 3.7 gigawatts of capacity. Approximately one-third of these contracts are directly with major hyperscalers, while the remainder involves lesser-known neocloud providers that companies like Google and Blackstone are eager to partner with or mimic.
Notable players in this burgeoning space include IREN, which recently secured a $3.4 billion deal with Nvidia that also included a $2.1 billion equity commitment for GPU deployment. Similarly, Riot Platforms has entered into an AI colocation agreement with AMD, while Core Scientific and HUT 8 have also forged significant agreements with major cloud clients.
This evolving dynamic positions Bitcoin miners advantageously, regardless of whether established tech giants choose to develop their own independent cloud operations or continue partnerships with external providers. The essential requirement for ready-to-use, grid-connected power is a crucial element that miners are uniquely positioned to fulfill.
Bernstein’s analysis has led to bullish ratings for several Bitcoin mining firms. They have assigned outperform ratings to companies such as IREN with a $100 price target, Riot Platforms with a target of $25, CleanSpark at $24, and Core Scientific also at $24. Conversely, they have given a market-perform rating to Marathon Digital Holdings, projecting a $23 price target for the firm.
As the AI landscape continues to evolve, the intersection between Bitcoin mining and cloud computing will likely play a pivotal role in shaping the future of technology infrastructure.
