US stocks dip on AI spending fears, but asset managers jump

Wall Street's major stock indexes are under pressure from investor concerns over the rising costs and uncertain returns of massive AI infrastructure spending, even as shares of alternative asset managers jumped on bets that they will profit from the boom. The AI spending spree, estimated at over $5 trillion through 2030, has fueled worries about debt-laden companies defaulting and higher borrowing costs. However, firms like Blue Owl, Ares Management, KKR, Blackstone, and Apollo Global saw stock gains, as they own data centers and secure long-term leases with tech giants. These asset managers are locking in revenue through 12- to 15-year leases with investment-grade tenants like Microsoft and Amazon, avoiding direct bets on AI success. Blue Owl alone has over 130 data centers operating or under construction, representing nearly 14 gigawatts of capacity.