New Delhi, Nov. 5 -- The artificial intelligence boom is creating an enormous financing challenge for the global financial system, with Blackstone warning that lenders could become increasingly exposed to the companies driving the expansion even as investors question whether markets can absorb the scale of spending.

Blackstone President Jon Gray said the next phase of AI infrastructure development would require greater reliance on equity financing, as banks and other lenders face growing concentration risks from their exposure to major technology companies.

Speaking at the Hong Kong Monetary Authority's Global Financial Leaders' Investment Summit on Tuesday, Gray said the scale of investment needed to build data centres and support comp...