Jon Grays says impatience about AI returns is 'a little misplaced'
Blackstone president Jonathan Gray argues that investor impatience regarding AI returns is misplaced, noting that the technology requires time to integrate into the global economy. He maintains that Blackstone's heavy investment in data centers and AI infrastructure will yield long-term value.
Why it matters
As a major institutional investor, Blackstone's perspective influences market sentiment regarding the sustainability of the current AI capital expenditure boom.
Jonathan Gray said AI applications will "take time" to show up. Bloomberg/Getty Images Jon Gray, the president of Blackstone, said it "takes some time" for AI applications to show up. Blackstone is invested across the AI ecosystem, and Gray said the growth has "a long way to run." The firm recently bought three hotels in the San Francisco area, the country's center of AI. Good, potentially very lucrative things will come to the AI investors who wait, if you ask Jon Gray. Gray, the president and chief operating officer at Blackstone, said that growing concern about the pace of the AI buildout is somewhat overblown. "I'm not going to discount that there's not going to be misallocations of capital. There are people who are doing things that may not turn out to have high returns. But I think the impatience is a little misplaced.
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