BlackRock (NYSE:BLK) and Microsoft (NASDAQ:MSFT) have announced the creation of the Global AI Infrastructure Investment Partnership, a new fund aimed at investing more than $30 billion to support the development of artificial intelligence (AI) infrastructure.
Bolstering computational capacity
As AI continues to transform industries, the partnership is expected to play a pivotal role in developing the infrastructure necessary to support these emerging technologies, bolstering both computational capacity and sustainable energy solutions across key markets.
The initiative, unveiled on Tuesday, will focus on building data centres and energy projects to meet the growing computational demands of AI models, particularly those used in deep learning and large-scale data processing.
AI models require significant computational power, often necessitating clusters of thousands of specialised chips to perform complex data crunching.
This surge in computing needs has driven up demand for advanced data centres and energy solutions capable of supporting AI’s power-hungry processes.
The fund’s objective is to improve AI supply chains and energy sourcing, with BlackRock and Microsoft aiming to mobilise up to $100 billion in total investment potential when including debt financing.
Nvidia and MGX involved
MGX, an Abu Dhabi-backed investment firm, will serve as a general partner in the partnership, while leading AI chip manufacturer Nvidia will provide technical expertise for the project.
The majority of the fund's investments will be concentrated in the United States, with the remainder allocated to partner countries.
It is hoped that the initiative will address the infrastructure challenges posed by the rapid growth of AI technologies, ensuring the availability of resources to power the next wave of AI advancements.