Bloomberg Intelligence Podcast
Episode: BlackRock’s GIP Buys Aligned Data Centers in $40 Billion Bet
Date: October 15, 2025
Hosts: Caroline Hyde, Paul Sweeney
Featured Analysts: Mandeep Singh (Tech Analyst), Deborah Aiken (Luxury Analyst), Nicole d’Souza (Internet Analyst), Anurag Rana (Tech Analyst)
Episode Overview
This episode centers on BlackRock’s Global Infrastructure Partners (GIP) leading a $40 billion acquisition of Aligned Data Centers, marking an enormous bet on the future of AI-driven infrastructure. The discussion explores the impact of massive circular investments in the AI ecosystem, the growing demand for data centers, the potential risks of a market bubble, and the transformation of digital infrastructure. The episode also covers adjacent market news, including luxury retail’s rebound (with LVMH) and private equity interest in Grindr, alongside a closer look at Apple’s strategic AI positioning.
Key Discussion Points & Insights
1. BlackRock’s $40 Billion Data Center Bet (Aligned Data Centers Acquisition)
[01:33 – 02:59]
- Deal Announced: BlackRock’s GIP, alongside MGX, Microsoft, Nvidia, and X, is acquiring Aligned Data Centers for $40 billion in Texas. This is the first major move from a $100 billion pool of AI-focused investment capital.
- Industry Landscape: The deal reflects “insatiable demand for compute,” raising values of both physical infrastructure and leading chip companies.
- Market Momentum: Data center deals are fueling stock market growth, with significant players in both ownership and utilization.
- Quote:
"Anyone who likes financing data centers or needs access... or has some GPUs to put inside data centers, seemingly wanted in on what was a $100 billion get-together pool of capital."
— Tech Analyst, [02:13]
2. Emergence of ‘Circular’ AI Investments & Bubble Speculation
[02:59 – 04:47]
- Circularity Explained: Major technology players are investing in one another (e.g., Nvidia funding OpenAI so OpenAI can buy Nvidia GPUs), creating a “circular” investment ecosystem.
- Market Sentiment: Some sources and even major financial executives are increasingly using the term “bubble” to characterize the AI infrastructure market.
- Valuation Concerns: The Bank of America global managers’ survey highlights most see AI valuations as excessive.
- Notable Industry Examples:
- N Scale: Once a crypto miner, now shifting to AI data center builds, supported by Nvidia and Microsoft.
- OpenAI: Receiving unprecedented equity funding ($100 billion).
- Build-it-and-they-will-come Mentality:
"Ultimately, where are we getting the money from at the moment? Build it and they will come is the mentality. We need the infrastructure before you can really get the productivity gains."
— Tech Analyst, [04:32]
3. ASML’s Turnaround & Geopolitical Semiconductor Dynamics
[04:47 – 06:21]
- ASML Update: After warnings due to US-China trade restrictions, Dutch semiconductor equipment firm ASML now sees robust demand and easing market anxieties, though bookings fell quarter-on-quarter due to reduced Chinese demand.
- Unique Position: ASML remains the only maker of certain advanced EUV lithography equipment essential for leading-edge chips.
- Geopolitical Tensions:
"China is so outsized in their revenue stream and China is going to start dialing back in 2026 because of the geopolitical issues."
— Tech Analyst, [05:21]
4. Luxury Retail Recovery: LVMH Results & Market Signals
[08:55 – 14:30]
- LVMH’s Positive Earnings:
- Organic sales growth surprised on the upside (+1% vs anticipated -1%), signaling a potential sector rebound.
- All business units improved sequentially; particular strength in China and the US.
- Luxury Market Dynamics:
- Ultra-luxury brands (e.g., Hermès) outperformed via restricted volume, while mid-range brands have also grown.
- Chinese consumption remains critical; tourism recovery is still lagging.
- Wines & Spirits Division:
- Champagne and rosé wine sales are strong; spirits are mixed but inventory issues are stabilizing.
- Quote:
“The biggest and the best [in luxury] are expected to come back first.”
— Deborah Aiken, [11:53]
5. Private Equity Targeting Grindr: The Case for Going Private
[17:08 – 21:43]
- Potential Take-Private Move: Largest shareholders of Grindr are considering a deal, possibly valuing the company at $3B (~$15/share), though no formal offer is on the table yet.
- Business Performance:
- Grindr remains one of the few dating apps growing its paying user base (8% penetration on ~15M users).
- Ad revenue has grown ~40% last quarter; lots of opportunity in new ad formats and price increases.
- Strategic Advantages:
- Grindr’s affluent and mostly Gen Z user base is attractive to advertisers. Its blend of community and dating utility helps retention and growth.
- Quote:
“Grindr has done a great job of attracting these users, of holding onto them, and again, it could be a great place for advertisers to reach Gen Z.”
— Nicole d’Souza, [21:06]
6. Apple’s Conspicuous Absence from AI Investment Frenzy
[24:20 – 28:30]
- AI Participation: Apple is noticeably absent from high-profile AI/data center circular investments. Panelists suggest Apple prefers to ‘wait for the dust to settle’ and adopt best-in-class third-party AI models into their devices.
- Supply Chain Strategy: Amid US pressure to reshore, Apple is increasing manufacturing in Vietnam (rather than moving major assembly to the US).
- AI Roadmap:
- Next iterations of Siri may incorporate external LLMs (e.g., Gemini, OpenAI, Anthropic).
- Apple is testing multiple models to find the best for end-user quality.
- Quote:
“It’s possible Apple may work with Gemini, get their technology infused in their products... It's going to go with the one [with] the highest quality of searches or queries or answers.”
— Anurag Rana, [27:41]
7. Upcoming Tech Earnings & Analyst Focus
[28:30 – 30:17]
- Tech Sector Bifurcation:
- AI-related businesses (CoreWeave, Microsoft) expected to outperform.
- Traditional consulting/model, like IBM consulting, may face revenue pressures, though innovation arms might do better.
- Microsoft in Focus: Azure/cloud growth and data center capacity constraints will be key markers.
- Research Priorities:
- AI ecosystem mapping: Who funds whom, and what are the downstream impacts on hardware, chips, and infrastructure.
- Quote:
“There are two aspects... OpenAI leading and signing contracts, and companies like Meta, Amazon, Microsoft building capacity themselves. We’re trying to figure out which will have a greater impact on the ecosystem.”
— Anurag Rana, [30:17]
Notable Quotes & Moments
-
On Data Center Investment:
"It's a huge campus... operating in US and indeed in South America... 50 campuses, 78 data centers. As we seem to have insatiable demand for compute and therefore values go skyrocketing."
— Tech Analyst, [02:25] -
On AI Market Frothiness:
“You even have the CFO of Citigroup yesterday talking about his anxiety when it comes to potential frothiness in the AI market.”
— Tech Analyst, [03:25] -
On Luxury Market Comeback:
“All five of the business units are improved versus Q2... China is mid to high single digit growth versus a year ago.”
— Deborah Aiken, [09:37] -
On Apple’s AI Strategy:
“Let everybody else fight it out. In the end it will go to the one that has the best model and include that in its own distribution channel, which is basically iOS.”
— Anurag Rana, [26:40]
Timestamps for Important Segments
- BlackRock/Aligned Data Center Deal: 01:33 – 02:59
- AI Circular Investments & Bubble Discussion: 02:59 – 04:47
- ASML, Semiconductors & China: 04:47 – 06:21
- LVMH & Luxury Goods Recovery: 08:55 – 14:30
- Grindr Going Private: 17:08 – 21:43
- Apple & AI Positioning: 24:20 – 28:30
- Tech Earnings Outlook: 28:30 – 30:17
Conclusion
This episode offers a panoramic analysis of the tech, infrastructure, and luxury sectors. The BlackRock-AI infrastructure deal highlights investor euphoria and potential froth in the AI ecosystem, while the situation at ASML reflects how geopolitics rewires semiconductor supply chains. LVMH's results hint at a luxury rebound, and the Grindr segment spotlights tech M&A/PE activity. Meanwhile, Apple’s careful, methodical approach to AI contrasting with the current “deal fever” suggests multiple pathways—and risks—ahead. The episode is rich in expert insight, timely data, and grounded concern about bubbles amid relentless innovation.