Investors in data centers, such as Blackstone, were expected to be some of the biggest beneficiaries of the AI boom as increasing adoption led to higher demand for such infrastructure.
But the sudden arrival of DeepSeek upended the tech world and sparked a debate over demand, with worries that the emergence of a low-cost option may slow investment in data centers.
Blackstone’s president and Chief Operating Officer Jonathan Gray, in a post-earnings call with analysts, said the company was closely watching developments tied to DeepSeek.
However, he expects lower costs could yet lead to a wider adoption of AI, boosting demand for data centers.