BlackRock and Microsoft Partner to Launch $30B AI Infrastructure Fund
In a landmark move, BlackRock is preparing to launch a massive $30 billion AI investment fund in partnership with Microsoft and MGX, the Abu Dhabi-backed investment firm. This joint effort, dubbed the Global AI Investment Partnership, aims to address the escalating power and infrastructure needs associated with artificial intelligence.
The fund, which seeks to raise $30 billion in equity and leverage that to support $70 billion in debt financing, will be one of the largest investment vehicles ever raised on Wall Street. The goal is to build data centers and energy projects that can meet the enormous computing and energy demands driven by AI technologies. Nvidia, a major player in the AI chipmaking space, will also advise on the design and integration of these projects.
As AI continues to grow, it has placed unprecedented pressure on existing energy infrastructure, requiring far more power than previous technologies. This fund will focus on mobilizing private capital to help scale the AI infrastructure needed for continued development, a step that Larry Fink, CEO of BlackRock, sees as a “multitrillion-dollar long-term investment opportunity.”
The fund launch also coincides with BlackRock’s acquisition of Global Infrastructure Partners (GIP), a private infrastructure investment group, for $12.5 billion, expected to close in October 2024. For Microsoft, this initiative complements its ongoing commitment to powering 100% of its energy consumption with zero carbon energy by 2030, demonstrated by its recent backing of $10 billion in renewable energy projects.
As AI products face potential capacity bottlenecks, this investment fund aims to secure the future of AI development while unlocking new opportunities in both energy and digital infrastructure.
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