"The small fry are getting squeezed out," wrote one equities portfolio manager.

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.

The duo plans to launch the unnamed U.S. company with $5 billion in equity capital from Blackstone, which will be the majority owner, according to people familiar with the matter.

Alphabet's Google agreed to create an artificial intelligence cloud business with Blackstone, aiming to compete with companies like CoreWeave in a burgeoning market. The project will rely on an initial $5 billion in equity capital from Blackstone,

Google and Blackstone are creating a standalone AI cloud company that will sell Google’s proprietary TPU chips to outside customers, with Blackstone contributing $5 billion in equity for a majority stake.

Alphabet's Google and Blackstone plan to launch an artificial-intelligence cloud company using Google's specialized chips, the Wall Street Journal reported on Monday, citing sources