Google has agreed to combine its fiber broadband unit, GFiber, with U.S. operator Astound Broadband to form a new independent fiber provider, with infrastructure investment firm Stonepeak taking a majority stake in the venture. Google will retain a minority ownership position in the new company, which will continue to be led by the existing GFiber executive team. The transaction is expected to close in the fourth quarter of 2026.

The new entity will bring together GFiber’s experience in deploying high-speed fiber networks with Astound’s established broadband footprint in the United States. According to the companies, the combined platform is intended to accelerate the expansion of fiber infrastructure at a time when demand for high-capacity networks is increasing rapidly. Growth in cloud computing, streaming services, and artificial intelligence workloads is placing greater pressure on broadband networks, prompting operators and investors to scale fiber deployment.

GFiber was launched by Google in 2010 as an effort to introduce gigabit-speed broadband in the United States, beginning with its first deployment in Kansas City in 2012. The project was initially positioned as a challenge to traditional broadband providers, offering speeds significantly faster than typical U.S. consumer internet connections at the time. While some early expansion plans were later scaled back, GFiber has continued operating in select markets, focusing on targeted network deployments rather than a nationwide rollout.

Under the new structure, the combined company will draw on Stonepeak’s infrastructure investment capacity to fund further fiber expansion. Stonepeak acquired Astound Broadband in 2021 for $8.1 billion and has since positioned the platform as a key vehicle for broadband growth in the United States. Astound claims it’s the “sixth largest telecommunications provider, serving eight of the top ten metro markets in the United States,” and is believed to serve over a million customers in California, Illinois, Washington State, and more.

The partnership is expected to leverage both companies’ existing networks and operational expertise to extend fiber coverage across additional markets.

“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,” said GFiber CEO Dinni Jain in a statement announcing the transaction.

GFiber has historically been housed within Alphabet’s “Other Bets” division, which includes experimental or non-core businesses such as Waymo and Isomorphic Labs. In 2025, the segment generated $1.54 billion in revenue, representing less than 0.5 percent of Alphabet’s total sales, and recorded an operating loss of $16.8 billion.

Google’s move to retain minority stake in the new JV is telling, given it traditionally is a software business. As data consumption accelerates and AI-driven services generate higher traffic volumes, fiber networks are becoming a critical layer of the global digital infrastructure stack, supporting everything from cloud platforms to emerging compute-intensive applications.