Jasvinder Khaira, head of Blackstone’s AI unit BXN1, stated that the firm remains confident despite recent volatility in AI-linked debt markets. Khaira, who has been with the company since 2004, launched the N1 platform in April 2026 to manage private equity strategies within the AI sector.
Internal risk assessments for Blackstone’s private credit fund, BCRED, indicate that less than 5% of its investments face significant AI-related challenges. The firm distinguishes between risks associated with long-term data center leases and those linked to software startups potentially impacted by new AI models.
Market concerns intensified in October 2026, as bonds for AI infrastructure providers like CoreWeave dropped below 80 cents on the dollar, with yields nearing 15%. Blackstone also saw some of its project-related bonds trade below 88 cents throughout 2026 amid a broader sell-off in data center debt.
The total volume of AI-focused leveraged finance issuance reached $88 billion in 2026, marking a significant increase from the previous figure of approximately $20 billion. While Blackstone maintains a diversified approach, analysts suggest smaller lenders may face greater pressure from this debt surge.
