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Blackstone president calls for more equity to fund AI buildout as debt risks mount
Blackstone's Jon Gray says AI buildout will need more equity financing as lenders become more exposed to the companies driving it.
Key points
- Jon Gray said lenders' returns are largely limited to interest and principal repayments, so their upside is limited.
- Pimco CEO Emmanuel Roman said AI capital spending could reach around $10 trillion over the next five years.
- Goldman Sachs wrote in a report Monday that data center demand will require about $8.5 trillion in capital spending over five years.
Why it matters. Growing AI financing needs and debt concentration risks could push companies toward equity and structured deals, as speakers at the Hong Kong summit argued.
Jon Gray, Blackstone's president and chief operating officer, said on Tuesday in Hong Kong that AI infrastructure will need additional equity financing as lenders grow more exposed. Lenders have limited upside because their returns are largely confined to interest and principal repayments, Gray said. Pimco CEO Emmanuel Roman warned the scale of AI financing could be "too much" for markets, with about $550 billion in AI debt issued so far this year.
Latest updates
Blackstone president calls for more equity to fund AI buildout as debt risks mount
Blackstone President Jon Gray says AI infrastructure needs more equity as debt investors face concentration risks amid massive spending plans. Jon Gray, president and chief operating officer of Blackstone Inc., during the Global Financial Leaders' Investment Summit in Hong Kong, China, on Tuesday, Nov. 3, 2026. This year's event brings together around 280 global financial leaders, including roughly 120 group chairs and CEOs, with the outlook for markets, the global economy and rapid advances in technology among the big themes. Photographer: Anthony Kwan/Bloomberg via Getty Images Bloomberg | Bloomberg | Getty Images The artificial intelligence infrastructure buildout will need more equity financing as lenders become increasingly exposed to the companies driving the buildout, Blackstone President Jon Gray said Tuesday. Speaking at the Hong Kong Monetary Authority’s Global Financial Leaders’ Investment Summit, Gray said the scale of capital required for AI is creating concentration risks for debt investors, both across the sector and at individual companies. Unlike shareholders, who can benefit from a company's growth, lenders have limited upside as their returns are largely confined to interest and principal repayments, he said. There’s going to be more equity needed across this space to keep up with these enormous demands. Jon Gray President & COO, Blackstone Inc. Speaking at t.