Blackstone president urges shift to equity financing for AI infrastructure

Blackstone President Jon Gray warned on Tuesday that the massive capital requirements for AI infrastructure are creating unsustainable concentration risks for debt investors. Speaking at the Global Financial Leaders’ Investment Summit in Hong Kong, Gray argued that the industry must pivot toward greater use of equity financing to sustain the buildout of data centers and supporting power systems.

Pimco CEO Emmanuel Roman joined Gray in cautioning that the scale of AI investment—estimated by some at $10 trillion over the next five years—could strain global financial markets. Roman noted that with roughly $550 billion in AI-related debt already issued this year, the sheer volume of capital needed is beginning to test the limits of what debt markets can absorb.

Despite these financing constraints, demand for computational power continues to outpace supply. Gray emphasized that while companies are increasingly turning to structured transactions and hyperscaler cash flow to bridge the gap, the logistical hurdles of securing power, permits, and hardware remain significant challenges for the sector.