Private equity heavyweights Blackstone and KKR are in discussions with Alphabet’s Google to provide artificial intelligence capabilities across their portfolio companies, in a move that could further embed AI tools within the global buyout industry, according to a report by Bloomberg.
The proposed arrangements would give firms owned by the two asset managers access to Google’s AI models under broad, portfolio-wide agreements, according to people familiar with the talks. EQT is also reportedly involved in similar discussions.
Unlike separate AI consulting ventures being developed by other technology providers, the Google discussions are said to focus on direct access to models rather than standalone advisory businesses. The structure would allow private equity firms to deploy AI capabilities across dozens of portfolio companies simultaneously.
The talks reflect an accelerating push by major private equity groups to integrate artificial intelligence into their holdings, particularly software and technology businesses that are increasingly exposed to competitive pressure from AI-native products.
Industry peers including Thoma Bravo and Vista Equity Partners have already struck partnerships with Google Cloud to roll out AI tools across their portfolios, while OpenAI and Anthropic have separately formed collaborations with alternative asset managers to build enterprise-focused AI deployment platforms.
For private equity firms, the partnerships are seen as both defensive and strategic—helping portfolio companies adapt to AI-driven disruption while potentially improving operational efficiency and growth prospects. Software businesses in particular have faced valuation pressure amid concerns that AI could displace traditional enterprise tools.
At the same time, the arrangements highlight the growing convergence between large technology providers and private capital, as AI developers seek stable enterprise demand and private equity firms look for ways to protect and enhance portfolio value.
The discussions remain ongoing, with no guarantee of final agreements, but they underscore how AI has become a central strategic priority for the buyout industry as competition intensifies across foundational model providers.
