BlackRock and Microsoft Unveil $30 Billion AI Infrastructure Fund

MGX, an Abu Dhabi-backed investment firm, will serve as the fund's general partner

According to a joint announcement made on Tuesday, BlackRock and Microsoft have formed a groundbreaking $30 billion fund to strengthen artificial intelligence (AI) infrastructure. The Global AI Infrastructure Investment Partnership will focus on building AI-powered data centers and energy projects to meet the increasing demand for computational power in AI. As AI models, particularly those used by deep learning, get more advanced, their computing requirements grow. Large-scale data processing today demands enormous computer power, increasing energy usage. To meet these demands, technology companies must combine thousands of chips in specialized data centers, causing a significant increase in demand for these facilities.

MGX, an Abu Dhabi-backed investment firm, will serve as the fund's general partner, while Nvidia, the AI chip powerhouse, will provide technical expertise. The alliance intends to strengthen AI supply chains and assure sustainable energy sourcing to fulfill the sector's energy-intensive requirements. Overall, the partnership has the ability to raise up to $100 billion in investments, including loan funding. Both BlackRock and Microsoft see now as a critical time to capitalize on the changing AI landscape and propel future technical developments. The fund emphasizes the crucial role infrastructure plays in AI development, as well as the growing importance of sustainable energy in driving the next generation of innovation.