Blackstone Stands Strong Amid AI Disruption

Blackstone, a significant investor in data centers, asserts the importance of physical infrastructure in the AI era despite the emergence of low-cost AI models by DeepSeek. With $80 billion in leased centers, Blackstone anticipates higher AI adoption will boost infrastructure demand, aligning with insights from major tech CEOs and analysts.

Blackstone, one of the foremost investors in data centers, has reaffirmed the necessity of robust physical infrastructure in powering artificial intelligence advancements, amidst concerns over emerging low-cost AI models from China's DeepSeek. The asset manager maintains its strategy through strategic partnerships with leading global companies.

With a $80 billion portfolio in leased data centers, Blackstone is strategically positioned to benefit from increased demand spurred by the AI boom. Although DeepSeek's affordable models have raised industry concerns, Blackstone's President Jonathan Gray remains optimistic that cost reductions might enhance AI adoption and subsequently, infrastructure demand.

Analysts, including those from Jefferies, highlight the competitive dynamics in the AI sector. CEOs from tech giants like Microsoft and Meta have also underscored substantial AI investments, citing essential competitiveness. Despite market jitters, Blackstone's foundational approach appears resilient, even as shares dipped nearly 4% in recent trading.

(With inputs from agencies.)