Blackstone CEO says firm is mindful of excessive exuberance in AI

EarningsIndustry
โดย Yahoo Finance·Read original
Summary · why it matters

Blackstone CEO Stephen Schwarzman said the firm is mindful of potential excessive exuberance in AI and has been selective in its investments, as the company reported second-quarter distributable earnings of $2 billion, or $1.52 per share, up 26% from a year earlier. Schwarzman pointed to earlier investments in data centers, energy, power and AI companies as the most significant driver of results, but cautioned about uncertainties in the rapidly expanding AI boom. He added that AI will have as great an impact as the commercialization of electricity and the industrial revolution, though faster and more complex, and that society will need to monitor developments and course correct when necessary. Blackstone's infrastructure business within private equity was the best performing major strategy, growing 7.2% for the quarter and 28.6% over the last twelve months, while its credit and insurance division saw net realizations drop 95% to $3 million and its contribution to earnings fall 6%. The firm also launched a $35 billion investment platform with Broadcom and Apollo Global Management to lower AI compute and power costs, and started an AI cloud provider with Google parent Alphabet.

Impact on stocks 4

Artificial Intelligence▲ · 3 stocks
Blackstone Group Inc
BX
▲ PositiveCapitalrelevance

Blackstone reported Q2 distributable earnings up 26% and highlighted AI investments as key driver, though CEO cautioned on exuberance.

Broadcom Inc
AVGO
▲ PositiveCapitalrelevance

Blackstone launched a $35B AI compute platform with Broadcom and Apollo, indicating Broadcom's involvement in a major AI infrastructure initiative.

Alphabet Inc Class C
GOOG
▲ PositiveCapitalrelevance

Blackstone started an AI cloud provider with Alphabet, indicating Alphabet's partnership in AI infrastructure.

Aging Population▲ · 1 stocks

Theme Impact 6

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