Blackstone exec: AI debt worries overblown as firm expands data center investments

Blackstone senior executive Jas Khaira said at TechCrunch Disrupt in October 2026 that market concerns over debt tied to the AI buildout are exaggerated, and outlined how the private equity firm is positioning itself at the center of the AI boom.

Khaira, who leads Blackstone's San Francisco-based AI hub Blackstone N1 (BXN1), said the firm invests through multiple strategies, from large loans to data centers to investments in frontier AI models and applications. With about $1.3 trillion in assets under management, Blackstone says it is the largest owner of compute outside of the hyperscalers.

BXN1 has been involved in several compute-related deals, including Crux AI, a neocloud launched with Google to commercialize its custom TPUs, to which Blackstone committed $5 billion, and chip startup Etched.

Khaira acknowledged that rising interest rates and wider credit spreads have fueled concerns about AI infrastructure debt, particularly as neocloud operators like CoreWeave have accumulated large debt loads. However, he argued the situation is different from the 2008 financial crisis, noting that most data centers are built for hyperscalers and backed by highly creditworthy companies. He added that AI companies still cannot get enough compute to power their models.

Separately, Blackstone formed a $1.5 billion joint venture with Anthropic and Hellman & Friedman called Ode to help companies adopt AI. Khaira said the returns from AI adoption are real but uneven.