TMT Credit Research: Silicon x Sponsor: GOOGL TPU Cloud JV & Credit Ecosystem Read-Throughs

Research evidence excerpt

TMT Credit Research: Silicon x Sponsor: GOOGL TPU Cloud JV & Credit Ecosystem Read-Throughs

UpdateM

BX/GOOGL TPU Cloud JV Hypothetical Illustration

Exhibit 1: We present an illustration of how the BX/GOOGL TPU Cloud JV model could conceivably evolve – building on announced

and reported details, incorporating key learnings from the CRWV model in our recent ORCL work, and layering in additional

assumptions

Possible GOOGL lease

backstop/guarantee, no

mention however

Blackstone Google

To supply hardware,

including TPUs, as

well as software and

services (most likely Unclear if initial TPUs are

direct to Compute contributed for equity (ex.

Initial commitment of $5bn Acq. sub) 250MW/~$5bn/49%), sold w/

in equity capital from funds cash equity separate, or

managed by Blackstone; leased to JV; key value is

majority owner per WSJ GOOGL controls TPU

Potential integration allocation

with BX digital infra

ecosystem (ex. QTS)

New TPU Cloud JV

BX/GOOGL JV, US-based, not

~15Y lease (or with Compute named yet Additional equity & debt

Acq. sub dependent on

at corp. level possible

customer offtake)

Developer Affiliated Single Possible

initial Residual Site Shell(s) equity cash via

(WSJ reported 5/18 GOOGL/BX funding dividends

identified DCs that will likely be part

of venture, some in process of being

built)

Hypothetical TPU Neo.

Compute Acq. # LLC

subsidiary of New TPU Neo.

Other details:

- Expects to bring first 500 MW capacity online in '27, w/ Funding Compute-as-a-service

plans to scale significantly over time (delayed Full amort. Payments offering, using TPUs, Possible unsold

- WSJ reported this is expected to support ~$25bn draw) over over ~5Y, over ~5Y take-or-pay capacity backstop

compute investments incl. leverage (implied 80% LTC) contract poss.