Blackstone Stock Slides 3% as AI Data Center Venture Hits Delays and Gray Flags Global Risks

Blackstone shares fell roughly 3% on Tuesday, underperforming the broader market, as a Bloomberg report revealed that its $5 billion AI data center joint venture with Alphabet is facing significant setbacks. The venture, known as Crux AI or internally as "Project Braid," was designed to lease Google's AI processors to customers by 2027, but has encountered transformer, interconnection and development problems at key sites, including a Cheyenne, Wyoming campus. The venture says its diversified site pipeline keeps its 2027 capacity target within reach.

Separately, Blackstone's Blackstone-backed AirTrunk is also delaying a planned $1.5 billion REIT IPO in Singapore until next year, citing higher interest rates and market volatility, adding another cloud over the firm's data center ambitions.

On the deal front, Bumble agreed to be taken private by Ithaca Holdings, a newly formed entity, in an all-cash transaction valuing the dating-app company at $1.3 billion, or $6.05 per share. That price represents a premium of approximately 138% to Bumble's unaffected closing price on October 9, 2026, and about 119% above its 30-day volume-weighted average price. Affiliates of Blackstone and founder Whitney Wolfe Herd, who recused herself from board deliberations, provided written shareholder consent that satisfied the required approval threshold under Delaware law. Blackstone also reported a record $6 billion European exit, a milestone for its regional portfolio activity.

Meanwhile, Blackstone President Jon Gray, speaking at the Bloomberg New Economy Forum in New Delhi, identified electricity infrastructure, defense and life sciences as priority investment themes. Gray said India's market liquidity is now "probably second to the United States today," calling it a real acceleration in growth over the past two decades. He flagged fiscal strains in France, the UK and elsewhere in Europe as a more pressing near-term risk than in the US, a view echoed by Federal Reserve Governor Christopher Waller. Both said US investment in technology is helping to offset its own fiscal pressures, even as governments globally face tough choices on spending.