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Blackstone Profits Rise as AI Infrastructure Bets Offset Market Slumps

Blackstone reported a third-quarter net income of $662.4 million, climbing past the $624.9 million recorded a year ago as aggressive investments in artificial intelligence infrastructure shielded the firm from sluggish performance across its traditional private equity and real estate portfolios.

Blackstone Profits Rise as AI Infrastructure Bets Offset Market Slumps

The New York-based investment giant saw its distributable earnings reach $1.7 billion, or $1.32 per share, down from the $1.52 per share reported in the same period last year. Revenue saw a marginal decline to $3.06 billion, while fee-related earnings held steady at $1.6 billion. Despite these fluctuations, the firm’s total assets under management surged 10% to $1.368 trillion, bolstered by $63.3 billion in fresh inflows.

Growth was anchored by the firm’s infrastructure unit, which saw values climb 6.4% over the quarter and 28.9% over the past year. This success stems from a strategic pivot toward data centers and high-stakes positions in AI-focused companies including Anthropic and OpenAI. Meanwhile, the private equity division faced headwinds, reporting a 6.7% drop in distributable earnings to $813.1 million, proving that while legacy sectors struggle, the firm's heavy concentration in the AI build-out is currently dictating its financial trajectory.

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