Blackstone says AI buildout needs more equity as debt risks mount

Pimco CEO Emmanuel Roman echoed these concerns, stating that AI-related capital spending could reach around $10 trillion over the next five years, a figure cited from General Atlantic CEO Bill Ford. Roman highlighted that approximately $550 billion in AI debt had already been issued this year, warning that the total amount required would be "gigantic" relative to the roughly $20 trillion global corporate bond market. Goldman Sachs recently estimated that global data center demand alone will require about $8.5 trillion in capital spending over the next five years.

Despite the financing challenges, Gray remained optimistic about the sector, noting that spending on AI models across Blackstone’s portfolio companies had risen 20-fold in the past year. He emphasized that a mix of public markets, banks, and private capital, along with cash from hyperscalers, will be needed to fund the buildout. The shift toward structured transactions aims to limit debt exposure while addressing the enormous scale of required capital.