In a week that underscored its aggressive growth trajectory, Blackstone Inc. (BX) has made headlines with significant initiatives spanning artificial intelligence, automotive investments, and biopharmaceutical developments. The alternative asset manager is setting its sights on a burgeoning AI data center market, while also pursuing ambitious acquisitions and collaborations in other sectors.
The firm has unveiled plans for a publicly traded acquisition vehicle aimed at purchasing AI data centers, with the intention of gathering tens of billions in capital. By starting with funding from sovereign wealth funds and institutional investors, Blackstone aims to broaden its market reach, ultimately giving retail investors the opportunity to participate in the evolving infrastructure of artificial intelligence.
However, some market observers express skepticism regarding the timing of such investments. Concerns linger over the potential obsolescence of large AI training facilities located far from urban centers, as technological advancements may alter the landscape of data center viability.
Volkswagen Acquisition Bid
In a strategic play, Blackstone, alongside Brookfield Asset Management, has put forth bids exceeding €8 billion (approximately $9.4 billion) for a controlling stake in Volkswagen’s Everllence SE unit, which specializes in manufacturing heavy diesel engines and power-plant turbines. Volkswagen’s initiative to divest this segment aims to streamline operations and enhance overall profitability.
Other contenders in this competitive bidding process include well-regarded firms such as Advent International, Bain Capital, EQT AB, and CVC Capital Partners, all of which have advanced to subsequent rounds of negotiations. As discussions progress, the outcome remains uncertain, with no guarantees for any of the bidders.
Partnership with Johnson & Johnson
Meanwhile, Blackstone Life Sciences has forged a landmark co-funding agreement with Johnson & Johnson to support the advancement of bleximenib, an oral drug under investigation for treating acute myeloid leukemia (AML). This partnership signifies a noteworthy collaboration within Blackstone’s life sciences division and marks the first instance of co-funding between the two companies.
Acknowledged as the most prevalent acute leukemia among adults, AML poses significant treatment challenges, often resulting in the lowest survival rates compared to other leukemia types, thus underscoring the critical nature of this partnership.
In an additional boost to Blackstone’s credibility, RBC Capital has initiated coverage with an optimistic Outperform rating and set a price target of $179. The bank highlighted Blackstone’s early entry into the private wealth sector as a key driver for future growth, noting its advantageous position within a recovering real estate market and the overall surge in retail investor interest.
Despite the promising developments, BX stock experienced a 3.88% decline on February 27, coinciding with the announcement of the AI data center venture and the Volkswagen bid. As Blackstone navigates these multifaceted initiatives, the coming weeks will be crucial in determining its growth trajectory across various sectors.
