Blackstone And AI

 

Blackstone, the world's largest alternative asset manager with 1.2417 trillion USDs in private equity, real estate, private credit, hedge funds assets under management invests large portion of its newly raised funds in artificial intelligence, AI projects like AI data centers and private equity buyouts of AI technology companies, according to Wolfteam Ltd.'s estimates.

The fact that AI is a focus point of Blackstone's new investments is even stated on its website.  

Blackstone is basically forced along with the other leading private equity firms like KKR, Apollo, Carlyle, Ares, CVC to invest in artificial intelligence, since AI related investments in companies like Microsoft, Alphabet, Meta and Amazon have been beating the general US stock market  for several years now and in addition artificial intelligence is being forecast by Wall Street analysts and investors and Silicon Valley technologists and investors as the fourth industrial revolution. And private equity giants investments like Blackstone's private equity investments are being bench marked against the S&P 500. And according to various sources the average private equity portfolio has been beating the S&P 500 for the last 15 years.

What is more, artificial intelligence, AI provides for operational average and when this is taken atop on the financially leveraged nature of private equity which in general uses 30 % equity and leverages that with 70 % raised debt on average these two leverage factors provide for opportunity to magnify returns several times and bring about a boon for Blackstone's private equity investments.

In addition, investors' high expected return requirements force Blackstone to seek out high yielding private equity investments like artificial intelligence, AI. Here it must be said, that Blackstone is a prestigious, huge firm with extensive resources, which help it in providing management expertise to the AI technology firms it invests its private equity finds into.

In short, the mid-term future of Blackstone's investment portfolio is tied to artificial intelligence, AI, according to Wolfteam Ltd.'s projections and estimates. As the US economy, for that matter.