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, 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 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.

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 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.