Google, Blackstone to Create AI Cloud Firm With In-House Chips

Alphabet Inc.’s Google agreed to create an artificial intelligence cloud business with Blackstone Inc., aiming to compete with companies like CoreWeave Inc. in a burgeoning market.

The project will rely on an initial $5 billion in equity capital from Blackstone, which will become the majority owner, according to a statement Monday. Including leverage, the investment will be worth $25 billion, a person familiar with the matter said.