Google, Blackstone plan AI cloud venture with $5 billion backing, WSJ reports
Overview of the Google and Blackstone AI Cloud Venture
Venture Details and Investment
May 18 (Reuters) - Alphabet's Google and Blackstone plans to launch an artificial-intelligence cloud company using Google's specialized chips, the Wall Street Journal reported on Monday, citing sources.
Blackstone's Role and Equity Contribution
Blackstone, the world's largest alternative asset manager, is expected to contribute $5 billion in equity and hold a majority stake in the unnamed U.S. venture, with a deal expected to be announced in a few hours, the report said.
Google's Technology and Service Contribution
Google will supply hardware, including its specialized chips known as Tensor Processing Units, or TPUs, as well as software and services to the venture, the WSJ reported.
Market Impact and Industry Response
Verification and Official Comments
Reuters could not immediately verify the report. Google and Blackstone did not immediately respond to a Reuters' request for comment.
Google's Position in AI Cloud Computing
Analysts and investors say Google is taking a sizeable share of new AI-driven computing demand, helped by its business tools and custom chips that have lured customers such as Anthropic.
Leadership of the New Venture
Long-time Google executive Benjamin Treynor Sloss will serve as CEO for the new venture, according to the WSJ report.
Broader AI Investment Trends
Global AI Spending Among Tech Giants
The world's largest companies are ramping up investment in artificial intelligence. 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.
(Reporting by Natalia Bueno Rebolledo and Mrinmay Dey in Mexico City; Editing by Sherry Jacob-Phillips)
