At the Financial Times Private Capital Summit, Blackstone (BX) President Jonathan Gray said that AI is now the first topic his teams must address when they assess any new deal. The firm views AI as both a major risk and a major driver of change. Gray noted that understanding how AI could hurt or help a company has become essential in every investment memo.
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He said that Wall Street is still missing how deeply AI could reshape industries. Some investors see an AI bubble forming, but he added that the real threat might be in legacy businesses that fail to adapt. As an example, he compared the situation to New York taxi licenses, which rose in value for years and then dropped more than 80% after Uber Technologies (UBER) and Lyft (LYFT) changed the market.
Shifting Investments and New Priorities
Blackstone, an asset management firm that specializes mainly in real estate, has already adjusted its portfolio in response. The firm avoided buying software and call-center companies that may lose business as automation expands. Instead, it has invested more in the infrastructure that supports AI. This includes data centers used by OpenAI (PC:OPAIQ), Microsoft (MSFT), and Alphabet (GOOG), as well as utility companies that power those facilities. Gray said that Blackstone has also repositioned some of its industrial companies, such as Copeland and Legence, to serve AI power and cooling needs.
Still, the company’s credit business has exposure to the technology shift. It has lent billions of dollars to enterprise software firms, including Medallia, which could face competition from AI-driven products. Gray added that while AI will cause disruptions and job losses in some areas, it may also lead to large productivity gains. He believes that the rise of machine learning could create trillions of dollars in new corporate wealth over time.
Overall, Gray said Blackstone is making sure every deal team asks how AI could change both the risks and the opportunities for each business. He said that treating AI as a central factor rather than a side issue is now part of the firm’s process.
Is Blackstone a Good Stock to Buy?
Turning to the Street, Blackstone boasts a Moderate Buy consensus. The average BX stock price target stands at $186.64, implying a 19.40% upside from the current price.
