Blackstone, KKR, EQT in talks with Alphabet to give cos their own access to Google’s AI models – Bloomberg news

Private equity giants Blackstone, KKR, and Sweden-based EQT are engaged in confidential negotiations with Alphabet to secure omnibus licensing agreements that would grant their portfolio companies direct access to Google’s advanced AI models, including those in the Gemini series. This strategic move aims to integrate AI tools across hundreds of operating businesses spanning diverse sectors and geographies within their investment portfolios. Unlike other AI initiatives, such as Anthropic’s $1.5 billion joint venture with Blackstone and others, which involves embedding engineering teams inside portfolio firms, Alphabet’s approach focuses on broad access through licensing rather than hands-on consultancy services.

This distribution strategy positions Google to compete directly with AI providers like OpenAI and Anthropic in the lucrative enterprise AI market, especially targeting mid-market and large-cap companies often backed by private equity but less likely to be early technology adopters. Private equity firms like Blackstone and KKR have already invested billions into AI infrastructure such as data centers, signaling their commitment to harnessing AI capabilities across their holdings. By partnering with Alphabet on AI access, these firms could accelerate digital transformation for their portfolio companies, potentially reshaping operational efficiency and innovation. The discussions underscore the growing importance of enterprise AI adoption through private equity channels as a key vector for commercial AI expansion and competitive differentiation in the broader technology landscape.