Blackstone expands role in AI boom through compute financing

Blackstone is positioning itself as a central player in the artificial intelligence sector by providing diverse capital structures, including debt and equity, to support the industry's massive infrastructure requirements. Through its San Francisco-based hub, Blackstone N1 (BXN1), the firm is focusing on compute financing, investing in data centers, and supporting neoclouds.

Jas Khaira, leader of BXN1, stated that Blackstone is currently the largest owner of compute outside of hyperscalers. The firm has engaged in significant deals, such as a $5 billion investment in Crux AI—a neocloud launched with Google—and backing the chip startup Etched. Blackstone has also pioneered financing models that allow for large-scale lending to venture-backed neoclouds by using GPUs as collateral and analyzing customer contracts.