New AI Infrastructure Fund Introduced, Backing by BlackRock & Microsoft

Key Points:

• BlackRock and Microsoft have launched an AI infrastructure fund to invest in data centres and energy infrastructure.
• The fund aims to raise $30 billion in equity and an additional $70 billion in debt, totalling $100 billion for AI-related infrastructure.

According to Reuters, BlackRock and Microsoft joined forces with Global Infrastructure Partners GIP and Abu Dhabi-based MGX to form the Global AI Infrastructure Investment Partnership.

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BlackRock and Microsoft Unveil $30 Billion AI Infrastructure Fund

The endeavour will channel $30 billion of private equity to invest in data centres and energy infrastructure essential for further development in AI technologies.

The AI infrastructure fund is one of the largest Wall Street bets on AI to date and will look to meet the growing demand for digital infrastructure and power driven by the rapid rise of AI. This is because AI technologies, in particular those put to use in deep learning, require huge amounts of computational resources; hence, high energy usage can be very straining on energy resources.

Larry Fink, Chairman and Chief Executive at BlackRock, illuminated several major, long-term investment opportunities in the creation of infrastructures for AI. He said such investments would unlock opportunities within a multi-trillion-dollar market.

The new AI infrastructure fund will be managed by BlackRock‘s newly acquired infrastructure unit, GIP, with Microsoft and MGX as general partners. Nvidia, the leading AI chipmaker, will provide design and integration guidance.

New Venture Seeks to Meet AI Needs Centered on Data Centers, Renewable Energy

GAIIP intends to bring up to $30 billion in equity and up to another $70 billion through debt financing, totaling $100 billion of investment potential. This will go to the principal uses of data center development and renewable energy projects needed for the growing computational demands of AI. The major focus of investment will be within the United States and with partner countries.

This AI Infrastructure Fund represents an increasingly busy financial sector interested in AI, but it also fits into the greater trend within sustainable energy solutions.

Microsoft has been a big player in AI both with OpenAI partnerships and Azure, but said it would commit to furthering its support for AI infrastructure and green energy, building on an earlier $10 billion in investment into renewable energy with Brookfield Asset Management.