Blackstone's second-quarter profit rose 26% on AI investments; assets hit $1.35 trillion as firm beat profit estimates

Blackstone's second-quarter profit rose 26% to $1.98 billion, or $1.52 a share, driven by strong revenue from its AI investments across private-equity and real estate sectors. This performance exceeded estimates of $1.35 per share, reflecting the firm's strategic focus on artificial intelligence.¹²

The firm’s total assets reached $1.35 trillion, bolstered by significant inflows, particularly in private equity, which helped offset a slowdown in private credit. CEO Stephen Schwarzman noted that nine of Blackstone's top ten investments are linked to AI, emphasizing the sector's growth potential.³⁴

“We are in the early days of what I believe will be the most consequential transformation of industry and markets in a generation,” Schwarzman stated, highlighting the firm's commitment to AI. He also acknowledged the risks of “excessive exuberance” in AI investing, indicating ongoing discussions with industry leaders about job creation and economic impacts.

Blackstone's infrastructure unit reported gross returns of 7.2%, outperforming other investment areas. The firm completed several listings, including advertising technology company Liftoff Mobile and a data center investment vehicle, further solidifying its position in the AI landscape. Despite a decline in its retail flagship Blackstone Private Credit Fund BCRED, which raised $1 billion in the quarter, President Jon Gray noted a slowdown in redemption requests, indicating a stabilizing trend.⁵