Key Takeaways
- • Blackstone CEO Stephen Schwarzman declared the firm's stock "on sale," noting a decline of more than 20% since the beginning of 2026, with the stock down nearly 35% from its 52-week high amid market concerns.
- • Q2 2026 distributable earnings reached $2 billion ($1.52 per share), representing 26% year-over-year growth and exceeding analyst expectations of $1.7 billion, driven primarily by investments in data centers, energy, power, and AI infrastructure.
- • Blackstone launched a $35 billion AI infrastructure investment platform in partnership with Broadcom and Apollo Global Management aimed at reducing compute and power costs for AI model training, alongside a separate AI cloud provider partnership with Google parent Alphabet announced in May.
- • Schwarzman cautioned against "excessive exuberance" in the AI boom, emphasizing that while AI will have transformative societal impact comparable to electricity commercialization, the firm has "carefully chosen our spots" to manage downside risk in the rapidly evolving sector.
- • The 79-year-old billionaire CEO flagged significant uncertainty inherent in AI's accelerating development, warning that major technological shifts of this magnitude require ongoing societal monitoring and course correction.
Summary
Blackstone CEO Stephen Schwarzman made strategic remarks on Thursday regarding the firm's valuation and investment positioning, characterizing the company's stock as substantially discounted amid a challenging market environment for the alternative asset manager. The stock has declined more than 20% since the beginning of 2026 and trades nearly 35% below its 52-week high, prompting Schwarzman's assessment that current prices represent an attractive entry point for investors.
The firm's operational performance, however, demonstrated resilience in the quarter ending June 30, 2026. Blackstone reported Q2 distributable earnings of $2 billion, or $1.52 per share, reflecting 26% growth compared to the prior-year period and surpassing analyst consensus expectations of $1.7 billion. Schwarzman attributed this outperformance primarily to earlier-stage investments in data centers, energy infrastructure, power assets, and AI-related companies, which emerged as the most significant profit drivers during the quarter.
Schwarzman's comments on artificial intelligence revealed a nuanced stance balancing conviction with caution. The firm announced two major AI infrastructure initiatives: a $35 billion investment platform jointly established with Broadcom and Apollo Global Management designed to lower compute and power costs for AI model training, and an AI cloud provider partnership with Alphabet (Google parent) launched in May. Despite these substantial commitments, Schwarzman emphasized disciplined capital allocation, stating that "we're mindful of the potential for excessive exuberance in this area, and we've carefully chosen our spots, leveraging our scale and knowledge advantage to build conviction."
The CEO contextualized AI's significance within historical technological transformation, comparing its expected societal impact to the commercialization of electricity and the Industrial Revolution, while noting that AI will develop faster and with greater complexity. Schwarzman acknowledged material uncertainty regarding the technology's evolution and emphasized the necessity for societal monitoring and course correction as developments unfold. This measured perspective suggests Blackstone intends to remain opportunistic in AI infrastructure while managing concentration and valuation risks inherent in the sector's rapid expansion.
The firm's operational performance, however, demonstrated resilience in the quarter ending June 30, 2026. Blackstone reported Q2 distributable earnings of $2 billion, or $1.52 per share, reflecting 26% growth compared to the prior-year period and surpassing analyst consensus expectations of $1.7 billion. Schwarzman attributed this outperformance primarily to earlier-stage investments in data centers, energy infrastructure, power assets, and AI-related companies, which emerged as the most significant profit drivers during the quarter.
Schwarzman's comments on artificial intelligence revealed a nuanced stance balancing conviction with caution. The firm announced two major AI infrastructure initiatives: a $35 billion investment platform jointly established with Broadcom and Apollo Global Management designed to lower compute and power costs for AI model training, and an AI cloud provider partnership with Alphabet (Google parent) launched in May. Despite these substantial commitments, Schwarzman emphasized disciplined capital allocation, stating that "we're mindful of the potential for excessive exuberance in this area, and we've carefully chosen our spots, leveraging our scale and knowledge advantage to build conviction."
The CEO contextualized AI's significance within historical technological transformation, comparing its expected societal impact to the commercialization of electricity and the Industrial Revolution, while noting that AI will develop faster and with greater complexity. Schwarzman acknowledged material uncertainty regarding the technology's evolution and emphasized the necessity for societal monitoring and course correction as developments unfold. This measured perspective suggests Blackstone intends to remain opportunistic in AI infrastructure while managing concentration and valuation risks inherent in the sector's rapid expansion.
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