Blackstone is expanding its investments in artificial intelligence infrastructure through large-scale financing agreements, data center projects, and AI software partnerships, despite growing concerns about rising borrowing costs. Jas Khaira, head of the firm’s AI investment division Blackstone N1, said demand for computing capacity remains strong, although higher interest rates and increasing debt have created challenges for cloud infrastructure providers.
Speaking at TechCrunch Disrupt 2026 in San Francisco, Khaira outlined how Blackstone is using its $1.3 trillion in assets under management to finance AI development. The company established Blackstone N1 (BXN1) earlier this year as a dedicated San Francisco-based division overseeing investments across AI infrastructure, models, and applications.
Blackstone Invests Billions in AI Computing Infrastructure
Blackstone has committed $5 billion to Crux AI, a cloud computing company established in partnership with Google to commercialize its Tensor Processing Units (TPUs). The firm has also invested in Etched, a semiconductor startup developing processors for AI workloads.
Blackstone previously provided a $2.3 billion loan to CoreWeave in 2023, when the AI cloud provider generated approximately $30 million in revenue. The financing used CoreWeave’s Nvidia GPUs as collateral, with customer contracts from companies such as Microsoft providing additional assurance to lenders.
The arrangement became a financing model for other AI infrastructure providers seeking capital without relying entirely on equity funding. Blackstone subsequently co-led a $10 billion credit facility for Australian AI cloud provider Firmus alongside Coatue in February 2026.
Rising Borrowing Costs Raise Concerns Over AI Debt
Khaira acknowledged that financing conditions have become more difficult as interest rates and inflation increase borrowing costs. Lenders are also demanding higher credit spreads, adding to the cost of financing data centers and computing equipment.
CoreWeave’s debt has reached approximately $50 billion, while its shares recently declined more than 20%. Meanwhile, Firmus postponed its planned Australian stock market listing after investors resisted its targeted valuation of approximately $30 billion.
Despite these concerns, Khaira said AI infrastructure financing differs from the conditions surrounding the 2008 financial crisis. He argued that many data center projects are supported by long-term contracts with financially established technology companies, including Microsoft and Meta.
Blackstone evaluates the financial strength of customers when determining lending terms, rather than relying solely on the balance sheets of smaller cloud providers. However, Khaira acknowledged that rising financing costs are affecting even large technology companies.
Blackstone Partners With Anthropic on Enterprise AI Adoption
Beyond infrastructure, Blackstone has established a $1.5 billion joint venture with Anthropic and Hellman & Friedman called Ode with Anthropic. The company provides AI engineers to help businesses integrate Claude into their operations, initially targeting Blackstone’s approximately 280 portfolio companies.
Khaira said Blackstone’s portfolio businesses are already experiencing financial benefits from AI adoption, although returns vary considerably between companies. He described implementation as an uneven process in which periods of slower adoption could temporarily create excess computing capacity.
Featured image credits: Wikimedia
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