Global investment firm Blackstone (BX) is investing $300 million in DDN, a provider of high-performance computing and data storage solutions, according to the Wall Street Journal. This investment aligns with Blackstone’s strategy of expanding its presence in the AI sector.
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Notably, DDN’s technology is essential for the development of advanced AI models and is used by top companies, including Elon Musk’s xAI for its Colossus supercomputer project.
This marks DDN’s first external funding, with the company now valued at $5 billion. The funds will help DDN expand its customer base and enhance its position in the high-performance computing market.
Blackstone Makes Investments in AI Space
Blackstone has been actively expanding its presence in the growing AI sector through strategic investments. In the past few years, the company has actively invested in data centers, AI chipmakers, and other companies that support AI development.
For instance, Blackstone acquired QTS Realty Trust, a major data center operator, for $10 billion in 2021. Further, BX has a joint venture with Digital Realty, a global provider of data center solutions, to benefit from the rising demand for data storage and processing.
Moreover, Blackstone acquired Australian data center operator AirTrunk in 2024, boosting its global footprint in the AI sector.
Is BX a Good Stock to Buy?
Turning to Wall Street, BX has a Moderate Buy consensus rating based on six Buys and 10 Holds assigned in the last three months. At $181.73, the average Blackstone price target implies 4.46% upside potential. Shares of the company have gained 45.02% over the past six months.
