Blackstone's Gray: The Disruptive Risks of AI Are Our "Top Priority"
Jon Gray, President and Chief Operating Officer of the world's largest alternative asset management company Blackstone, stated on Tuesday that the disruptive risk brought by the development of artificial intelligence technology to enterprises is currently the group's top core focus.
“In almost every business decision we make today, we must take this factor into account,” Gray said at The Wall Street Journal’s live investor forum held in West Palm Beach, Florida.
Blackstone manages $1.27 trillion in assets, with business spanning almost every sector of the global economy.
Gray noted that certain parts of the group’s portfolio (including sandwich chain stores and apartment complexes) face a relatively low risk of being impacted by AI. However, he added, other businesses are facing much more severe challenges—for example, an insurance company has lowered premiums for clients using self-driving cars.
“You start to think: What does this mean for the auto repair industry? What does it mean for the auto insurance industry? What is the future for all kinds of rules-driven business models?” he said.
Like other major private capital institutions, Blackstone has made significant investments in artificial intelligence infrastructure, including the data center operator QTS—which delivered significant growth to its funds last year. In addition, Blackstone has invested in power generation and transmission networks, and last year agreed to acquire the U.S. utility company TXNM for $11.5 billion.
Gray pointed out that investing in the “supporting infrastructure” of the AI industry is the most reliable strategy to grasp the major trend of artificial intelligence.
“You don’t necessarily have to predict who will be the AI winners and who will be the losers,” Gray said. “Data centers, self-driving cars, robotics—all of these depend on electricity and digital infrastructure, and the market demand for such infrastructure will be enormous.”
Gray also revealed that Blackstone is investing in large language model companies and other artificial intelligence application software developers, “because I believe this field will create tremendous value, but obviously the risks of such investments are also higher.”
Editor: Guo Mingyu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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