On Thursday, Blackstone reassured investors that its substantial investments in data centers remain solid despite the emergence of low-cost artificial intelligence models from China. The company emphasized the importance of physical infrastructure for AI. With $80 billion invested in leased data centers, Blackstone described its strategy as "grounded in a very prudent approach" and highlighted partnerships with major global companies.
Data centers play a critical role in providing the necessary infrastructure for storing, processing, and analyzing vast amounts of data essential for training and running AI models. As AI adoption continues to rise, investors in data centers, like Blackstone, are poised to benefit significantly from the increased demand for such infrastructure.
Blackstone's President and Chief Operating Officer, Jonathan Gray, mentioned during a discussion with analysts that the company is monitoring developments related to DeepSeek. Despite concerns about the impact of cheaper AI options on data center investments, Gray believes that the growing usage of AI will drive up demand for data centers, emphasizing that it remains a crucial segment.
Analysts at Jefferies echoed similar sentiments earlier in the week, expressing surprise at the prospect of hyperscalers reducing their capital expenditure plans due to heightened competition in the AI space.
Investor interest in DeepSeek has surged, with a keen focus on scrutinizing the AI investment strategies of tech giants like Microsoft and Meta. Both companies highlighted the importance of substantial AI spending to maintain competitiveness in this evolving field.
Despite fluctuations in Blackstone's stock price, which dropped by nearly 4% in afternoon trading, the company remains optimistic about the continued relevance and significance of data centers in the era of AI advancement.