Blackstone Sets Up New Division to Capitalize on AI Boom

Much like gold seekers in the 1800s, Blackstone is heading out west in pursuit of a fortune. It’s betting on AI, however, not Au. 

The world’s largest alternative asset manager is creating a new division called “Blackstone N1” (BXN1), bringing its growth business under an umbrella focused on AI, according to an internal memo obtained by The Daily Upside. The new unit, headquartered in San Francisco, will be run by Jas Khaira, who will continue in his role as head of Americas for the firm’s Tactical Opportunities business and relocate from New York. He’s taking over for Jon Korngold, global head of Blackstone Growth, who is leaving the company. 

“AI is reshaping every business at the firm, and we need a dedicated, focused team positioned at the center of this critical area to further bolster our current presence on the West Coast, where the most innovative AI and technology companies are being built,” CEO Steve Schwarzman and Chief Operating Officer Jon Gray wrote in the memo. 

Investing in Infrastructure  

BXN1 will oversee AI and tech investments in the firm’s growth and Tactical Opportunities business, as well as its private equity strategies fund. The firm isn’t just focusing on the flashiest names in AI like OpenAI, Anthropic and SpaceX; it’s also investing in the plumbing that makes these innovations possible, such as data centers and energy and digital infrastructure. It’s not alone: 

• KKR recently acquired a 75% stake in Singapore data-center company ST Telemedia Global Data Centres, its largest Asia-Pacific infrastructure investment, The Wall Street Journal reported. 
• In February, The Information reported that Apollo Global Management was nearing a $3.4 billion lending deal for Nvidia chips leased to Elon Musk’s xAI. 

AI in Your 401(k): Private equity investments used to be reserved for the ultra wealthy, excluded from 401(k)s and other retirement plans due to illiquidity and high fees. But after President Trump signed an executive order last summer making it easier for employers to allow private assets in retirement plans, there’s been a push to do so. Last year, Blackstone launched a unit dedicated to developing products for the defined-contribution market, and in January, it announced a partnership with retirement plan administrator Empower.