- BlackRock and Microsoft are creating a $30 billion fund for AI infrastructure, focusing on data centres and energy projects.
- The fund, with MGX and Nvidia involved, could reach $100 billion, mainly investing in the US and partner countries.
OUR TAKE
It highlights significant investment in AI infrastructure, which is crucial for the continued development of advanced AI technologies like deep learning. BlackRock and Microsoft’s $30 billion fund will drive the development of data centres and energy projects, addressing the growing computational demands of AI.
–Jennifer Yu, BTW reporter
What happened
BlackRock and Microsoft have announced plans to launch a more than $30 billion fund aimed at advancing AI infrastructure, with a focus on data centres and energy projects. As AI models, especially those used in deep learning and large-scale data processing, require immense computational power, the demand for specialised data centres has surged, along with energy needs.
The new investment vehicle, known as the Global AI Infrastructure Investment Partnership, is designed to strengthen AI supply chains and energy sourcing. Abu Dhabi-backed MGX will act as a general partner in the fund, while Nvidia, a leader in AI chips, will provide technical expertise.
The partnership could mobilise up to $100 billion in total, including debt financing. BlackRock and Microsoft stated that the investments will primarily focus on the United States, with additional investments in partner countries.
The Financial Times was the first to report the development.
Also read: Google buys stake in BlackRock’s Taiwan solar unit
Why it’s important
With the potential to mobilise up to $100 billion, this investment could accelerate advancements in AI technology, boost innovation, and create opportunities in the tech industry.
Furthermore, involving key partners like MGX and Nvidia brings expertise in AI chips and funding, helping to strengthen global AI supply chains.
The focus on infrastructure will likely help reduce energy consumption challenges linked to AI, and the heavy US investment suggests a push for technological leadership in AI development, influencing both the tech and energy sectors.
