Blackstone CEO Stephen Schwarzman stated during a Q2 earnings call on the 23rd that the firm has been selective in AI infrastructure investments amid concerns of excessive enthusiasm in the sector. Schwarzman emphasized that Blackstone leverages its scale and knowledge advantages to carefully vet investment targets to ensure confidence. The comments come as Blackstone reported strong Q2 results driven by proactive investments in data centers, energy, power, and AI companies, though Schwarzman acknowledged numerous uncertainties exist within the rapidly expanding AI boom.
Schwarzman noted that while AI's impact could rival the commercialization of electricity or the Industrial Revolution, the transformation will unfold more complexly and rapidly. "This kind of major change causes anxiety due to uncertainties about how technology will evolve," Schwarzman said during the conference call. "As a society, we need to continuously monitor these changes and adjust course when necessary."
Blackstone Reports $2 Billion Q2 Distributable Earnings
Blackstone announced Q2 distributable earnings of $2 billion ($1.52 per share), representing a 26% increase compared to the same period last year. The result exceeded market expectations of $1.7 billion. Blackstone's stock closed at $124.50 on the 23rd in the New York market, up 1.37% from the previous session.
Blackstone Launches $35 Billion AI Investment Platform with Broadcom and Apollo
Blackstone's credit and insurance division launched a $35 billion investment platform in partnership with Broadcom and Apollo Global Management. The platform aims to reduce computational and power costs required for AI model training. In May, Blackstone also formed a partnership with Alphabet to launch AI cloud services.
Blackstone Infrastructure Division Records 28.6% Growth
Blackstone's infrastructure division recorded 7.2% growth during Q2 and 28.6% growth over the recent 12 months in the first half of the year. Schwarzman identified proactive investments in data centers, energy, power, and AI companies as the most critical factors driving earnings growth.
FAQ
What did Stephen Schwarzman say about Blackstone's AI investment strategy on the 23rd?
Stephen Schwarzman stated during a Q2 earnings call on the 23rd that Blackstone has been selective in AI infrastructure investments due to concerns of excessive enthusiasm in the sector. He emphasized that the firm uses its scale and knowledge advantages to carefully vet investment targets.
How much did Blackstone earn in Q2 distributable earnings?
Blackstone reported Q2 distributable earnings of $2 billion ($1.52 per share), a 26% increase compared to the same period last year, exceeding market expectations of $1.7 billion.
What AI investment platform did Blackstone launch with Broadcom and Apollo?
Blackstone's credit and insurance division launched a $35 billion investment platform with Broadcom and Apollo Global Management aimed at reducing computational and power costs required for AI model training.
