PaulGoogle just acquired Intersect for $4.75 billion.
Here's why this matters more than you think:
The bottleneck in AI isn't models anymore. It's energy.
They co-locate data centers with dedicated power generation. Multiple gigawatts of projects already in development. Gas, renewables, geothermal, carbon capture.
Google isn't buying technology. They're buying energy infrastructure at scale.
This tells you where AI competition is heading:
Every major AI company needs compute. Compute needs data centers. Data centers need power.
If you can't secure energy supply, you can't scale AI systems. Period.
Microsoft partnered with nuclear plants. Amazon is investing in small modular reactors. Now Google is acquiring an entire energy infrastructure company.
The pattern is clear.
For AI engineers building agent systems, this has implications:
Cloud costs aren't going down. Energy constraints mean compute will stay expensive. Efficiency matters more than ever.
A well-designed multi-agent workflow that minimizes unnecessary compute will outperform a brute-force approach.
Google's move is strategic. They're not waiting for grid capacity to catch up. They're building their own.
Intersect stays independent, keeps its brand, continues developing projects. But now they have Google's resources behind them.
Expected to close first half of 2026.
Watch this space. Energy infrastructure is becoming the foundation of AI capability.