Blackstone president urges equity focus for AI infrastructure

Blackstone President Jon Gray said on Tuesday that the massive capital requirements for artificial intelligence infrastructure necessitate a shift toward equity financing to mitigate risks associated with debt concentration. Speaking at the Hong Kong Monetary Authority’s Global Financial Leaders’ Investment Summit, Gray described the scale of funding needed for the sector as unprecedented.

Global capital spending related to artificial intelligence is projected to surpass $730 billion in 2026, rising from approximately $700 billion. Some long-term forecasts suggest that total capital expenditure for the industry could reach $10 trillion over the next five years. As of October 2025, AI-related debt was estimated at roughly $1.2 trillion.

Gray noted that while demand for computing power currently exceeds supply, the heavy reliance on debt financing creates potential risks for lenders. Because lenders are typically limited to interest and principal repayments, they do not capture the same growth upside as shareholders, creating a potential imbalance in the current financing model.

Other financial leaders at the summit also addressed the challenges of funding the AI buildout. Goldman Sachs CEO David Solomon emphasized the importance of maintaining a diversified investment approach, noting that market participants will inevitably face losses as the sector matures. Pimco CEO Emmanuel Roman also warned that the sheer scale of the required financing could place significant strain on global financial markets.

Companies involved in the AI expansion are increasingly expected to leverage a combination of public markets, bank lending, and private capital to support their growth. Despite concerns regarding market volatility and the concentration of debt, Gray stated that the extraordinary demand for AI infrastructure provides a degree of comfort regarding the long-term viability of the sector.