BlackRock is preparing to launch a groundbreaking investment fund of over $30 billion in collaboration with Microsoft. This fund aims to support the growing needs of artificial intelligence (AI) technology by developing data centers and energy projects. The partnership signifies a significant financial interest in AI infrastructure and is one of the largest investment vehicles ever created on Wall Street.
The fund will be overseen by BlackRock’s Global Infrastructure Partners, with Microsoft and MGX serving as general partners and Nvidia providing expertise on factory design and integration. Known as the Global AI Investment Partnership, this initiative addresses the escalating demands for digital infrastructure and energy resulting from the rapid expansion of AI technology.
The substantial power required to operate AI models has strained energy resources, prompting concerns about capacity limitations. The investment fund seeks to address these issues by constructing the necessary energy and computing infrastructure to support AI advancements. BlackRock aims to raise $30 billion in equity and secure an additional $70 billion in debt financing for a total investment of $100 billion, which will fund AI-related infrastructure including data centers and renewable energy projects. This investment aligns with BlackRock’s focus on the energy sector as a key area for growth.
CEO Larry Fink highlighted the vast potential of the AI sector, emphasizing the importance of mobilizing private capital to develop essential AI infrastructure. This initiative follows BlackRock’s agreement to acquire Global Infrastructure Partners for $12.5 billion, solidifying its position as a major player in infrastructure investments.
Microsoft, a prominent investor in AI and renewable energy, has made substantial commitments to green energy initiatives. The company previously pledged support for $10 billion in renewable energy projects with Brookfield Asset Management and aims to match 100% of its energy consumption with zero-carbon energy by 2030. Microsoft President Brad Smith stressed the significance of large-scale investments in AI infrastructure, recognizing the need for capital to accelerate the development of critical AI infrastructure.
The collaboration between Microsoft and BlackRock to launch the $30 billion AI infrastructure fund represents a significant step towards advancing AI technologies and supporting sustainable energy practices.
Source:
AI News: Microsoft & BlackRock Partner to Launch $30 Billion AI Infrastructure Fund on CoinGape.