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Blackstone's Jon Gray emphasizes need for equity in AI funding amid debt concerns
Nov 3, 2026
AI Summary
Blackstone President Jon Gray highlighted the necessity for more equity financing to support the growing demands of artificial intelligence infrastructure. He noted that the current reliance on debt could pose risks for investors, as AI-related capital spending is projected to reach $10 trillion over the next five years.
- Jon Gray, President of Blackstone, stated that the AI infrastructure buildout requires increased equity financing due to rising debt risks for lenders. He spoke at the Hong Kong Monetary Authority’s Global Financial Leaders’ Investment Summit.
- Gray pointed out that the scale of capital needed for AI creates concentration risks for debt investors, as their returns are limited compared to shareholders who benefit from company growth.
- Pimco CEO Emmanuel Roman warned that the scale of AI financing might be overwhelming for markets, estimating that AI-related capital spending could reach around $10 trillion in the next five years.
- Roman noted that approximately $550 billion in AI debt has been issued this year, and he compared the required financing to the global corporate bond market, which is about $20 trillion.
- Goldman Sachs reported that global data center demand will require around $8.5 trillion in capital spending over the next five years.
- Gray mentioned that financing the AI buildout will involve public markets, banks, and private capital, with companies using structured transactions to manage debt levels. He also indicated that cash from hyperscalers would contribute to funding.
- Despite financing challenges, Gray expressed optimism about AI infrastructure, stating that demand for computing power is significantly outpacing supply.
- He noted a 20-fold increase in spending on AI models across Blackstone’s portfolio companies over the past year, driven by benefits in areas like coding and customer engagement.
- Gray acknowledged the difficulties in meeting demand due to challenges in securing sites, permits, chips, power, and capital.
equityinvestmentai infrastructuredebt risksblackstone