Google and Blackstone to Establish Joint Venture for AI Cloud Services: Sources

Google and Blackstone Plan Artificial-Intelligence Cloud Company

Alphabet's Google and Blackstone, the world's largest alternative asset manager, are planning to launch an artificial-intelligence cloud company using Google's specialized chips, according to a report by the Wall Street Journal on Monday. The report cites sources indicating that Blackstone is expected to contribute $5 billion in equity to the unnamed U.S. venture and hold a majority stake. A deal is expected to be announced in the next few hours.

Google will supply hardware, including its specialized Tensor Processing Units (TPUs), as well as software and services to the venture. The WSJ report highlights Google's strategic move to capitalize on the growing demand for AI-driven computing, driven by its business tools and custom chips that have attracted customers such as Anthropic.

Benjamin Treynor Sloss, a long-time Google executive, is set to serve as CEO for the new venture. The partnership underscores the increasing investment in artificial intelligence by the world's largest companies. Last month, Alphabet, Amazon, Microsoft, and Meta signaled that AI spending would not slow down, with combined outlays now expected to exceed $700 billion this year, up from about $600 billion previously.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data