Jon Gray, President and Chief Operating Officer of Blackstone Inc., during the Global Financial Executives Investment Summit in Hong Kong, China, Tuesday, November 3, 2026. This year’s event brings together approximately 280 global financial executives, including approximately 120 group presidents and CEOs, with key themes including market outlook, the global economy and rapid technological advancements. Photographer: Anthony Kwan/Bloomberg via Getty Images
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Developing artificial intelligence infrastructure will require more equity financing as lenders become increasingly exposed to the companies driving the development. black stone President Jon Gray said Tuesday.
Speaking at the Hong Kong Monetary Authority’s Global Financial Executives Investment Summit, Gray said the scale of capital required for AI creates concentration risks for debt investors, both in the sector and in individual companies.
Unlike shareholders, who can benefit from a company’s growth, lenders have limited upside potential because their returns are largely limited to interest and principal payments, he said.
There will need to be more equity in this space to meet these enormous demands.
Jon Gray
President and Chief Operating Officer, Blackstone Inc.
Speaking on the same panel, Pimco CEO Emmanuel Roman warned investors that the scale of AI funding could prove “too big” for markets to absorb.
Roman said AI-related capital spending could reach about $10 trillion over the next five years, citing General Atlantic CEO Bill Ford’s estimate. He added that about $550 billion of AI debt has been issued in various forms so far this year.
Even with a combination of equity and debt financing, the amount required would be “gigantic,” Roman said, comparing it to a global corporate bond market of around $20 trillion.
“At some point it’s going to be too much,” he said.
Global demand for data centers will require approximately $8.5 trillion in capital spending over the next five years. Goldman Sachs wrote in a report Monday.
Gray said financing construction would require a combination of public markets, banks and private capital, with companies increasingly turning to structured transactions to limit the amount of debt they have. Cash generated by hyperscalers would also finance part of the expenses, he said.
“Creativity is necessary because the scale of capital is enormous,” Gray said.
Despite these funding issues, Gray remained optimistic about AI infrastructure, saying demand for computing power was “far greater than supply.”
Spending on AI models at Blackstone’s portfolio companies has increased 20-fold over the past year as companies have seen financial benefits through uses such as coding, customer engagement and content creation, he said.
Meeting that demand remains challenging, however, as securing sites, permits, chips, power and capital becomes more difficult, according to Gray.
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