Blackstone Dismisses $50 Billion AI Debt Crisis Fears as Higher Rates Hit Neoclouds
Updated
Updated · TechCrunch · Oct 21
Blackstone Dismisses $50 Billion AI Debt Crisis Fears as Higher Rates Hit Neoclouds
1 articles · Updated · TechCrunch · Oct 21
Summary
CoreWeave’s roughly $50 billion debt load has sharpened scrutiny of AI infrastructure financing, but Blackstone’s Jas Khaira said the buildup does not resemble a 2008-style credit threat.
Khaira said market jitters reflect September rate increases, hotter inflation, and a wave of AI debt issuance that has widened credit spreads even for borrowers tied to Microsoft and Meta.
Blackstone helped pioneer the model in 2023 with a $2.3 billion CoreWeave loan backed by Nvidia GPUs and customer contracts, then expanded it to deals including a $10 billion Firmus facility.
Those pressures are already hitting valuations: CoreWeave shares have fallen more than 20% in recent days, and Firmus scrapped an ASX IPO that had targeted about a $30 billion valuation.
Blackstone, which manages $1.3 trillion and launched AI hub BXN1 this year, is still betting compute demand will keep growing even if AI adoption and returns arrive unevenly.