Alphabet shares retreat as Google, Blackstone to launch AI cloud venture
19/05/2026 16:46
Updates ** Alphabet GOOGL.O shares down 2.2% at $388.13 amid broader weakness in tech sector on Tues after Google parent and Blackstone BX.N said they will form an artificial intelligence cloud venture ** Blackstone to invest an initial $5 bln in equity to bring 500 megawatts of data center capacity online in 2027, offering capacity and Google's custom AI chips ** The new U.S.-based venture aims to capitalize on surging demand for AI computing services and will be led by long-time Google exec Benjamin Sloss as CEO ** Shares of cloud infrastructure competitors CoreWeave CRWV.O and Nebius NBIS.O fall 6% and 3%, respectively, after the news ** Despite the decline, GOOGL stock has surged ~24% YTD and outperforming the Nasdaq's .IXIC 11% rise. Stock hit all-time intraday high of $408.61 on Mon ** Vast majority of analysts rate the stock "buy" or "strong buy", with a median PT of $420.00, per LSEG-compiled data (Reporting by Rashika Singh in Bengaluru and Lance Tupper in New York) ((Rashika.Singh@thomsonreuters.com;))