Google, Blackstone to create new AI cloud company, WSJ reports

Alphabet’s Google and Blackstone are planning to create a new artificial-intelligence cloud company, backed by a $5 billion equity contribution from Blackstone, the world’s largest alternative asset manager. The Wall Street Journal reported on Monday that Blackstone will hold a majority stake in the unnamed U.S.-based venture, with the deal expected to be finalized within hours. Google will provide the venture with hardware, including its Tensor Processing Units (TPUs), alongside software and services. The company’s specialized chips have already attracted customers like Anthropic, bolstering its position in AI-driven computing demand. The new venture will be led by Benjamin Treynor Sloss, a long-time Google executive, according to the WSJ. The move aligns with broader industry trends, as major tech firms—including Alphabet, Amazon, Microsoft, and Meta—have signaled increased AI spending, with combined outlays projected to exceed $700 billion this year, up from an earlier estimate of $600 billion. The announcement comes as tech giants compete to capture a growing share of AI infrastructure, leveraging custom hardware and business tools. Google’s TPUs and its existing AI ecosystem position it as a key player in this rapidly expanding market.