Google sells stake in fiber business, becomes minority owner

Google confirmed that its fiber internet division, GFiber, is merging with Astound Broadband to establish an independent provider, with Google holding a minority stake.

This new firm will primarily be owned by the investment company Stonepeak and managed by the current GFiber executive leadership, "leveraging their know-how in high-speed fiber innovation to oversee the unified network presence," mentioned Google in a press release on Wednesday. The deal is scheduled for completion in the fourth quarter.

Google Fiber, starting in 2010, was an initial attempt by Google to create ultra-fast fiber-optic broadband networks in the US, beginning with a gigabit-speed implementation in Kansas City in 2012. 

Google aimed to offer gigabit fiber links to residences, vastly outpacing the standard US internet speeds back then.

Afterward, some expansion plans were halted as the company concentrated on targeted markets instead of a widespread and resource-intensive national rollout.

This separation is happening as the need grows for high-capacity networks due to the rising use of artificial intelligence services. 

The external investment will facilitate the new company in scaling across the US, the company explained.

"Joining forces with Astound and Stonepeak marks the following phase in our decade-long journey to transform what consumers anticipate from their internet provider," stated GFiber CEO Dinni Jain in the announcement.

GFiber has been integrated within Google's "Other Bets" section, consisting of non-core entities like the Waymo robotaxi segment and the drug research company Isomorphic Labs. 

In 2025, this combined section produced $1.54 billion in revenue, accounting for less than 0.5% of Alphabet's complete sales, with an operating loss of $16.8 billion.

The transition to fiber infrastructure is growing in significance as demands increase for networks capable of supporting cloud computing, streaming, and new AI services.