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Blackstone Reports 26% Rise in Q2 Distributable Earnings, Citing AI-Related Investments
Blackstone Inc. announced Thursday that its second‑quarter distributable earnings climbed to $2 billion, or $1.52 per share—a 26 percent jump from the same period last year and a beat on the $1.70 billion consensus.
During the post‑earnings conference call, CEO Stephen Schwarzman explained that the firm’s deliberate, selective play in the AI infrastructure boom was a key driver. He pointed to earlier bets on data centers, energy, power, and AI companies as the main contributors, while cautioning that the rapid expansion of AI still carries uncertainty and that Blackstone is poised to adjust its strategy as the market evolves.
The quarter’s AI activity included a $35 billion investment platform jointly launched with Broadcom and Apollo Global Management, designed to slash compute and power costs for training AI models. The platform, unveiled just days before the earnings release, fits into a broader effort to meet the surging demand for AI‑specific hardware and software.
In May, Blackstone partnered with Alphabet’s Google to launch an AI‑cloud provider. The deal began with a $5 billion equity injection to bring 500 megawatts of data‑center capacity online by 2027, with plans for further expansion.
The private‑equity arm’s infrastructure business was the best‑performing strategy in the quarter, growing 7.2 percent in Q2 and 28.6 percent year‑to‑date. Blackstone also manages funds that hold stakes in core AI firms such as SpaceX, Anthropic, OpenAI, and CoreWeave.
Industry estimates from Goldman Sachs suggest that nearly $200 billion of data‑center transactions have closed in the private‑market AI space since early last year. Blackstone’s shares slipped modestly on Thursday and have fallen more than 20 percent since the start of January, reflecting broader market pressure on private‑money managers.
The earnings report underscores the centrality of AI infrastructure to Blackstone’s portfolio strategy, while also highlighting sector volatility and the need for disciplined investment. Investors and analysts will continue to watch the firm’s future AI bets and the wider private‑market AI landscape closely.
During the post‑earnings conference call, CEO Stephen Schwarzman explained that the firm’s deliberate, selective play in the AI infrastructure boom was a key driver. He pointed to earlier bets on data centers, energy, power, and AI companies as the main contributors, while cautioning that the rapid expansion of AI still carries uncertainty and that Blackstone is poised to adjust its strategy as the market evolves.
The quarter’s AI activity included a $35 billion investment platform jointly launched with Broadcom and Apollo Global Management, designed to slash compute and power costs for training AI models. The platform, unveiled just days before the earnings release, fits into a broader effort to meet the surging demand for AI‑specific hardware and software.
In May, Blackstone partnered with Alphabet’s Google to launch an AI‑cloud provider. The deal began with a $5 billion equity injection to bring 500 megawatts of data‑center capacity online by 2027, with plans for further expansion.
The private‑equity arm’s infrastructure business was the best‑performing strategy in the quarter, growing 7.2 percent in Q2 and 28.6 percent year‑to‑date. Blackstone also manages funds that hold stakes in core AI firms such as SpaceX, Anthropic, OpenAI, and CoreWeave.
Industry estimates from Goldman Sachs suggest that nearly $200 billion of data‑center transactions have closed in the private‑market AI space since early last year. Blackstone’s shares slipped modestly on Thursday and have fallen more than 20 percent since the start of January, reflecting broader market pressure on private‑money managers.
The earnings report underscores the centrality of AI infrastructure to Blackstone’s portfolio strategy, while also highlighting sector volatility and the need for disciplined investment. Investors and analysts will continue to watch the firm’s future AI bets and the wider private‑market AI landscape closely.
