Blackstone (NYSE:BX) is launching a new division focused on alternative investments in artificial intelligence and high-growth tech, including companies such as OpenAI and Anthropic.
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Jas Khaira will lead the newly formed Blackstone N1 division and relocate from New York to San Francisco to head the firm's new West Coast–based team, Bloomberg reported.
Khaira will take over as head of Blackstone Growth, succeeding Jon Korngold, who is departing the firm. He will also maintain his original position as leader of Blackstone's Tactical Opportunities business in the Americas and will continue to serve on its investment committee.
BXN1 will be responsible for guiding Blackstone's investments in AI and technology across BXPE, the firm's private equity strategy for affluent investors, in addition to overseeing its Growth and Tactical Opportunities divisions.
Viral Patel will maintain the leadership of BXPE, and Chris James will remain in his position as head of Tactical Operations. Both Patel and James will still report to Joe Baratta, global head of Blackstone Private Equity Strategies, Bloomberg noted.
Blackstone has been rapidly increasing its presence in AI, establishing itself as a major investor in the sector. Building on its substantial data center portfolio, the firm is now prioritizing AI infrastructure as a key source of future returns.
"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 President Jon Gray wrote in the memo, cited by Bloomberg.
In 2021, Blackstone invested in Vectra, a company that uses AI to stop in-progress cyberattacks in the cloud. In the same year, Blackstone also invested in Ontra, a company that builds AI-powered solutions that digitally transform legal workflows in the private investment industry.
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