BlackRock and Microsoft Unveil Ambitious $100 Billion AI Infrastructure Fund

BlackRock and Microsoft have announced plans to launch a colossal investment fund in the field of artificial intelligence (AI), aimed at building necessary infrastructure and meeting energy demands for AI products. The fund, named Global AI Infrastructure Investment Partnership (GAIIP), will focus on constructing and expanding data centers to satisfy the increasing need for computing power.

In partnership with Global Infrastructure Partners (GIP), which BlackRock is set to acquire, and Abu Dhabi's AI-focused investment firm MGX, the fund intends to raise $30 billion initially through private equity capital, potentially reaching a total investment of $100 billion with debt financing. Investments will primarily occur in the U.S., supporting AI innovation and economic growth.

The partnership seeks to foster an open architecture and comprehensive ecosystem, providing non-exclusive access to various partners and companies. Nvidia will contribute expertise in AI data centers and AI factories, while Microsoft will supply funding and technical knowledge, aligning with its commitment to advance innovation across economic sectors.

Larry Fink, Chairman and CEO of BlackRock, highlighted the strategic opportunity to mobilize private capital in creating AI infrastructure, including data centers and energy projects, which promises substantial long-term investment opportunities. Nvidia’s CEO Jensen Huang emphasized the growing demand for AI infrastructure driven by accelerated computing and generative AI.

This major initiative underscores Microsoft's significant cash reserves, as noted by observers on social media, following its recently announced $60 billion share buyback plan, alongside this $30 billion AI fund.