In early 2023, Blackstone CEO Steve Schwarzman gathered with Jas Khaira, the companyβs lead AI investor, and other top executives at the finance giantβs Park Avenue headquarters in Manhattan for a debate: Should they give billions of dollars to a little-known data center developerβCoreWeaveβthat they had turned down just a few months earlier?
CoreWeave had gotten Blackstone to return to the table after landing a multiyear, multibillion-dollar contract to sell cloud computing services to Microsoft. It needed $2.3 billion to buy Nvidia GPUs and secure a data center to house them.
In Blackstoneβs discussion of the deal, several executives in the room had deep misgivings, according to a person who attended the meeting. CoreWeave was still something of a mystery, a six-year-old, privately held firm that had generated only $16 million in revenue in the previous year. Schwarzman himself was personally worried his investment team could be making a mistake, the person said.