Google, Blackstone to Create Cloud Business to Handle AI Demand

Alphabet Inc.’s Google is set to create an artificial intelligence cloud business with Blackstone Inc., aiming to compete with companies like CoreWeave Inc. in a burgeoning market, according to people familiar with the matter.

The project will rely on $5 billion in equity capital from Blackstone, which will become the majority owner, said the people, who asked not to be identified because the endeavor is still under wraps. Including leverage, the investment will be worth $25 billion, according to one of the people.