Despite concerns about a potential bubble, investment in artificial intelligence (AI) remains very strong. Just as much capital is required for building and operating data centers and power infrastructure as for developing AI models themselves. While big tech firms appear to be leading these investments, private equity funds are participating on a large scale. Among them, Blackstone stands out most prominently. After acquiring data center company QTS for USD 10 billion (about KRW 14.58 trillion) in 2021, Blackstone went on to purchase AirTrunk, Asia’s largest data center operator, for USD 16 billion in 2024. Blackstone’s data center assets have now exceeded USD 100 billion, making it the largest player in the world.

Blackstone was co-founded in 1985 by Stephen Schwarzman (1947– ) and Peter Peterson (1926–2018). As of the end of 2025, it is the world’s largest alternative asset manager, overseeing USD 1.3 trillion in assets. Alternative assets refer not to traditional investment targets such as stocks and bonds, but to real estate, commodities, entire companies, infrastructure, and similar asset classes. A substantial portion of the capital currently flowing into AI infrastructure is being deployed through alternative asset funds.

Schwarzman grew up in a Jewish family in Pennsylvania. From the age of 10, he worked at his parents’ store for an hourly wage of 10 cents and earned his own money by doing lawn-mowing jobs with his younger brothers. In high school, he was an elite track and field athlete. Enduring grueling daily training that left him on the verge of vomiting, he developed a mindset of thorough preparation and tolerance for hardship. As student body president, he also demonstrated strong execution skills, bringing in performances by famous vocal groups and directly calling the admissions dean of a prestigious university to persuade him to admit Schwarzman.

After graduating from Yale University in 1969, Schwarzman worked at the investment bank DLJ, then completed his MBA at Harvard Business School before joining Lehman Brothers. He rose quickly, becoming a partner at the age of 31 by closing mega-sized mergers and acquisitions (M&A). However, when the firm fell into crisis due to misjudgments by the new chief executive officer (CEO), he played a key role in arranging Lehman’s sale to American Express and then left the firm. In 1985, together with Peter Peterson, the former CEO of Lehman, he founded Blackstone.

Schwarzman believed that whether a business is small or large, the effort required is similar. This thinking applied when Blackstone moved from M&A advisory into private equity. For its first fund, instead of the realistic USD 50 million target proposed by Peterson, Schwarzman set an ambitious USD 1 billion target that seemed reckless at the time, ultimately succeeding in raising USD 850 million. Luck was on their side. Fundraising closed on 19 October 1987, just before the stock market collapse known as “Black Monday.” With the cash they had secured, they were able to buy assets cheaply during the downturn. Blackstone subsequently expanded into real estate, hedge funds, and corporate lending.

In 2007, in a rare move for a private equity firm, Blackstone listed on the New York Stock Exchange, and the capital raised then was deployed for corporate loans and real estate investments during the 2008 financial crisis. In particular, the business of buying up large numbers of U.S. homes, whose prices had plummeted, and renting them out became a major source of profit for Blackstone. However, the resulting increase in residential rents translated into a heavier housing burden for ordinary people. This was the backdrop to President Donald Trump’s administrative order in January restricting home purchases by large institutional investors. Schwarzman’s finance serves as fuel for growth, while at the same time adding to the cost of living for ordinary citizens.

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