The leading alternative asset management firms with large private equity arms like Blackstone, KKR, Apollo, Carlyle, CVC have all invested heavily in data centers, energy firms and other artificial intelligence infrastructure.
Blackstone, KKR, Apollo, Carlyle, CVC do that by buying out via leveraged buyouts mid sized technology firms, giving out credit via private credit to technology firms and investing via their real estate asset management arms in data centers, energy firms and distribution centers which service online merchandise trade.
AI infrastructure takes an ever larger proportion of both the existing and new investments of Blackstone, KKR, Apollo, Carlyle, CVC and other leading private equity firms.
Their hopes are riding on the current fourth industrial revolution driven by artificial intelligence, AI. Blackstone, KKR, Apollo, Carlyle, CVC are investing heavily in artificial intelligence, AI because the AI driven companies, especially the magnificent 7 technology companies namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla have outperformed the S&P 500 in the last ten years.
All this AI investment crowding seems much like the dot com boom and subsequent bust, according to Wolfteam Ltd.'s projections and estimates. It is true that we are still not in a state of euphoria, which was the state of mind in 1999. However the artificial intelligence, AI investment crowding out by Blackstone, KKR, Apollo, Carlyle, CVC and the other leading private equity firms which together are managing more than 4 trillion USDs could slowly but steadily build up to market euphoria, which subsequently could lead to a stock market crash, which is defined as a fall in the S&P 500, Dow Jones Industrial Average and the Nasdaq Composite of more than 35 %.
Yes, Blackstone, KKR, Apollo, Carlyle, CVC and the other alternative asset managers are investing in the future, because artificial intelligence, AI will change profoundly the way the world does business, enjoys leisure and builds new things. That said, excesses, signs of which are building could lead to a stock market crash, followed by economic recession bigger than the Great Recession in 2009-2013.
However, the net benefits of AI should be positive.
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