Alphabet announced on Wednesday that its fiber internet unit, GFiber, will merge with Astound Broadband to form an independent provider, with Google retaining a minority stake.

In a press release, the company stated that the new entity will be majority-controlled by investment firm Stonepeak and led by GFiber's existing management team, which will "leverage their expertise in high-speed fiber innovation to manage the combined network scale." The transaction is expected to close in the fourth quarter.

Google Fiber was launched in 2010 as an early effort by the tech giant to build an ultra-high-speed fiber broadband network in the United States. It first introduced gigabit broadband service in Kansas City in 2012, with plans to offer households fiber connections at speeds far exceeding typical U.S. internet offerings at the time.

Subsequently, some planned expansions were canceled, and the company shifted its focus to specific markets rather than pursuing a costly and time-consuming nationwide rollout.

The spin-off comes as Google works to put the unit on a path toward financial independence, while growing demand for artificial intelligence services is also fueling need for high-capacity networks. Alphabet indicated that external funding will help the division expand across the country.

GFiber CEO Dinni Jain said in the release, "Partnering with Astound and Stonepeak is another important milestone in our decade-long mission to redefine what customers should expect from their internet service provider."

GFiber was previously part of Alphabet's "Other Bets" division, which includes non-core assets such as the Waymo self-driving taxi unit and drug discovery company Isomorphic Labs. In 2025, the division reported total revenue of $1.54 billion, accounting for less than 0.5% of Alphabet's total sales, and recorded an operating loss of $16.8 billion.

As demand for high-capacity networks grows—driven by cloud computing, streaming, and emerging AI services—the shift toward fiber infrastructure has become increasingly critical. U.S. tech giants are also rapidly deploying transcontinental undersea fiber-optic cable networks to meet rising bandwidth needs.

Astound Broadband is a major U.S. cable operator and broadband platform that was acquired by Stonepeak for $8.1 billion in 2021. Stonepeak is an investment firm focused on infrastructure and real estate.