Blackstone President and COO Jon Gray said the AI infrastructure buildout will need more equity financing as lenders become more exposed to concentration risk, since their returns are largely limited to interest and principal. Pimco CEO Emmanuel Roman warned that AI financing could prove “too much” for markets, citing an estimate from General Atlantic of about $10 trillion in AI capital spending over five years and about $550 billion of AI debt issued so far this year, compared with a roughly $20 trillion global corporate bond market. Goldman Sachs estimates global data center demand will require about $8.5 trillion in capital spending over five years. Gray said financing will need a mix of public markets, banks, private capital and hyperscaler cash flow, and that demand for computing power is “running well ahead of supply.” Spending on AI models across Blackstone's portfolio companies rose 20-fold over the past year.
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