Google, Blackstone plan AI cloud venture with $5 billion backing, WSJ reports

Alphabet’s Google and Blackstone plans to ‌launch an ​artificial-intelligence cloud company using Google’s specialised chips, the Wall Street Journal reported on Monday, citing sources.Blackstone, the world’s largest alternative asset manager, is expected to contribute $5 billion (Dh18 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 will supply hardware, including its specialised chips known as Tensor Processing ‌Units, or TPUs, as well as ‌software and services to the venture, the ‌WSJ reported.Reuters could ‌not immediately verify the report. Google and Blackstone did not ​immediately respond ‌to a ​Reuters’ request for comment.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.Long-time Google executive Benjamin Treynor ⁠Sloss will serve as CEO for the new venture, according to the WSJ report.The world’s largest companies are ramping up investment in artificial intelligence. Last month, Alphabet, Amazon, ‌Microsoft and Meta signalled that AI spending would not slow ​down, with combined outlays now expected to exceed $700 billion (Dh2.57 trillion) this year, up from about $600 billion (Dh2.2 trillion) previously.