Google sells partial stake in fiber becomes minority owner in venture

Google said its fiber internet unit called GFiber is combining with Astound Broadband and forming an independent provider, with Google remaining as a minority shareholder.

The new company will be majority owned by investment firm Stonepeak and led by the existing GFiber executive team, “utilizing their expertise in high-speed fiber innovation to manage the combined network footprint,” Google said in a press release on Wednesday. The transaction is expected to close in the fourth quarter.

Google Fiber, launched in 2010, was an early effort by Google to build ultra-fast fiber-optic broadband networks in the U.S., starting with a gigabit-speed rollout in Kansas City in 2012. Google proposed building gigabit fiber connections to homes, far faster than typical U.S. internet speeds at the time.

Since then, some planned expansions were canceled and the company focused on select markets rather than a costly and time-intensive nationwide rollout.

The spinout comes at a time when demand is growing for high-capacity networks fueled by the increasing popularity of artificial intelligence services. The external capital will help the new entity expand across the country, the company said.

“This partnership with Astound and Stonepeak is the next step in our decade-long mission to redefine what customers can expect from their internet provider,” GFiber CEO Dinni Jain said in the release.

GFiber has been part of Google’s “Other Bets” segment, which includes non-core assets such as the Waymo robotaxi division and drug discovery business Isomorphic Labs. In 2025, the combined segment generated $1.54 billion in revenue, or less than 0.5% of Alphabet’s total sales, and recorded an operating loss of $16.8 billion.

The shift toward fiber infrastructure has become increasingly important as demand grows for networks that can support cloud computing, streaming and emerging AI services. U.S. tech giants are also rolling out a rapidly expanding network of transcontinental subsea cables, seeking to keep pace with growing bandwidth demand.

Astound is a major U.S. cable operator and broadband platform, which was acquired by Stonepeak in 2021 for $8.1 billion. Stonepeak specializes in infrastructure and real estate.

A Google spokesperson didn’t immediately respond to a request for comment.

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