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Microsoft and BlackRock have concluded plans to launch a $30 billion AI infrastructure fund to support the development of data centres and energy projects.
The firm also announced plans to launch a joint venture aimed at boosting global AI Infrastructure Investment Partnership, with an initial investment of over $30 billion to support the development of artificial intelligence infrastructure.
The announcement came as the global AI market continues to experience rapid growth, driven by advancements in machine learning, natural language processing, and other AI technologies.
The partnership aims to address the growing demand for data centers and energy resources required to power the rapid advancements in AI technology.
BlackRock in a statement said, “AI models, especially those used for deep learning and large-scale data processing, require substantial computational power, leading to higher energy consumption.
“By investing in AI infrastructure, we can help ensure that the technology continues to advance in a sustainable and responsible manner.”
The partnership will focus on investing in data centers, energy projects, and other critical components of AI infrastructure.
According to Microsoft, strengthening AI supply chains would enhance energy sourcing, and accelerate the development of AI applications across various industries.
“The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching power, leading to a surge in the demand for these specialized data centers,” said Microsoft.
“This partnership will help meet that demand while also addressing the environmental challenges associated with data center operations.”
MGX, a leading investment firm backed by the Abu Dhabi Investment Authority, will serve as a general partner in the fund.
AI chip giant Nvidia will also contribute expertise and resources to the partnership.
The companies anticipate that the total investment potential for the partnership will reach up to $100 billion when including debt financing.
