Investing in AI: The Megatrend of Megatrends
Artificial intelligence will transform the ways we live and work. At Blackstone, we see AI-enablement as a long-term investment theme and a tool for building stronger businesses.
Scale Matters
All AI relies on data – a resource that Blackstone, as the world’s largest alternative asset manager, has in abundance.
The volume of private market data in our portfolio equips us to spot trends early and invest when we have conviction.
Portfolio Companies[1]
230+
Real Estate Assets[2]
~12,500
Annual Portfolio Revenue[1]
$225B+
1. As of December 31, 2023.
2. As of March 31, 2024.
Early Adopters
Since 2015, Blackstone has been building the capabilities needed to capture the AI opportunity.
Our Chairman, CEO and Co-Founder Steve Schwarzman recognized AI’s potential early on and made founding donations to Oxford and MIT to create centers devoted to its study. Within the firm, our data science team has developed AI technology that aims to position Blackstone at the forefront of our industry. Hear more from Steve and Blackstone President Jon Gray.
News & Insights
WSJ: How Wall Street Lenders Are Betting Big on the AI Boom
Explosive growth in AI requires significant capital. Blackstone is proud to expand its existing partnership with CoreWeave, investing behind some of its highest conviction themes, AI and digital infrastructure.
WSJ: AI’s Unlikely Benefactor
The Wall Street Journal dives into Blackstone Chairman, CEO, and Co-Founder, Steve Schwarzman’s foresight on AI – from a bus ride in Beijing to one of today’s unlikely champions.
Business Insider: Big insurance companies want more private credit. Here’s how Blackstone is using AI to win them over
Blackstone CTO John Stecher explains how Blackstone aims to use AI to give insurance clients an edge.
Investing in AI-enablement
We’re investing not only in companies that harness AI, but also in the businesses that enable it.
Spotlight on Data Centers
Spotlight on Data Centers
More data has been created in the past three years than in all of human history combined, driven by cloud adoption, content creation and now AI.[3] All this data needs a place to live, creating demand for data centers and opportunity for Blackstone to invest at scale.
3. IDC, as of December 31, 2021. 2021 and 2022 represent year-end estimates.
Investment Examples
Building Strong Businesses with AI
Our team of data scientists works closely with Blackstone portfolio companies on AI strategy and integration, delivering an estimated $100 million of bottom line impact.4
Portfolio companies can also access our Blackstone Data Science Community and wider network of CEOs, researchers and senior advisors.
Link Logistics
Link Logistics
Link Logistics operates the largest portfolio of US-only industrial real estate, giving it access to a wealth of rent data and scale across markets. We partnered with the company in its development of a machine learning model that leverages over 2 billion data points to track unique asset level attributes, leasing trends, market fundamentals, and proximity to key demand drivers to help identify the right buildings in the right locations that are experiencing the strongest tenant demand.
Signature Aviation
Signature Aviation
We partnered with Signature Aviation to develop a machine learning model that helps field leaders align schedules with dynamically forecasted demand. This has helped enhance customer experience by preventing understaffing on peak days while improving the company’s operational performance.
4. “Bottom line impact” refers to EBIDTA impact, which is determined by: (i) identifying operational key performance indicators (KPIs) that may benefit from AI, (ii) measuring those KPIs both before and after the implementation of the AI model, and (iii) translating the impact on relevant KPIs to EBITDA. Methodologies for calculating EBIDTA impact vary based on the facts and circumstances associated with participating portfolio companies and are subject to limitations including the amount, nature and quality of available data. While the implementation of AI correlates with an increase in EBITDA among the portfolio companies included, there can be no assurance that such EBITDA increase was not caused by other factors in addition to or in spite of implementation of AI programs.
Blackstone Leaders on AI
Blackstone leaders explain how we are harnessing AI to invest with conviction and build stronger businesses.
Update from Jon Gray: Investing Before the All-Clear
Blackstone President Jon Gray discusses today’s dealmaking environment, competition in the age of artificial intelligence and more.
Joe Zidle: A Real-World Investment in the Age of AI
Joe Zidle, Chief Investment Strategist in the Private Wealth Solutions group, shares his views on the AI opportunity and whether or not the surge in AI-related stocks indicates a market bubble.