Google in Talks with Private Equity Firms for Omnibus Gemini AI Licensing
Alphabet (Google’s parent company) is in discussions with Blackstone, KKR, and European private equity firm EQT regarding access to their Gemini AI models through omnibus licensing agreements, according to a Bloomberg report.
The Difference in Approach
While OpenAI has established a ten billion dollar consulting company and Anthropic has formed a 1.5 billion dollar joint venture with Blackstone, Google is focusing on a licensing model. This strategic shift suggests that Alphabet believes enterprise AI deployment is primarily a platform issue, not a services problem.
Competitive Landscape
The private equity AI race has intensified, with these three leading AI labs viewing buyout firms as key distribution channels rather than mere clients.
Over the weekend:
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OpenAI finalised a ten billion dollar joint venture, "The Deployment Company," with 19 investors including TPG, Brookfield, Advent, and Bain Capital. This structure guarantees investors significant returns over five years, with OpenAI contributing up to 1.5 billion dollars and retaining control through super-voting shares.
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Anthropic announced a 1.5 billion dollar enterprise services firm with Blackstone, Hellman & Friedman, Goldman Sachs, General Atlantic, Leonard Green, Apollo, GIC, and Sequoia as participants. This venture will embed engineers within portfolio companies to integrate Anthropic’s AI models directly into business operations.
Google’s Strategy
Instead of building a joint venture or deploying its own engineers, Alphabet is negotiating licensing agreements that would grant private equity firms broad access to Gemini AI models for their portfolio companies.
This approach positions Google as a technology provider rather than a direct service provider, potentially tapping into the vast resources and network of private equity firms to expand its enterprise AI reach.