Microsoft and BlackRock Join Forces to Launch World’s Largest AI Investment Fund

Word on the StreetWednesday, Sep 18, 2024 5:00 pm ET

1min read

Recent reports indicate that Microsoft has collaborated with BlackRock and other partners to form the Global AI Infrastructure Investment Partnership (GAIIP), a venture set to become the world’s largest AI-focused investment fund. The fund aims to attract $30 billion in private equity, with a potential total investment reaching $100 billion, including debt financing. This initiative targets investments in data centers and other AI-supporting infrastructure.

Key partners include Global Infrastructure Partners (GIP) and Abu Dhabi-backed MGX, with NVIDIA providing technical support. The investment will primarily be allocated in the United States, with some resources extending to partner countries. The focus on open architecture and widespread ecosystem improvements highlights a significant push toward AI-powered infrastructure projects, especially in energy.

Microsoft's CEO Satya Nadella emphasized the company’s commitment to using AI to drive innovation and economic growth. He expressed confidence in GAIIP's potential to aggregate financial and industry leaders to build sustainable infrastructure. Larry Fink, CEO of BlackRock, noted the considerable long-term investment opportunities in constructing data centers and energy resources essential for the digital economy.

NVIDIA's involvement underscores the growing demand for advanced AI infrastructure. CEO Jensen Huang highlighted the increasing necessity for accelerated computing and AI systems, marking them as central to the next industrial revolution. This collaboration aligns with tech giants’ efforts to expand the capabilities of AI ecosystems, which include running models like those powering applications such as OpenAI's ChatGPT.

This development comes alongside Microsoft’s ongoing capital expenditure in supporting Azure's public cloud expansion, a service catering to firms like OpenAI. The partnership reflects a strategic move to bolster AI infrastructure through substantial capital injection, paving the way for enhanced AI supply chains and innovation-driven growth across sectors.

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