Microsoft, BlackRock to launch US$30b AI infrastructure fund
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The news: Global investors BlackRock, Global Infrastructure Partners (GIP) and MGX have joined with tech giant Microsoft to launch a new artificial intelligence partnership, with plans to invest in data centres and support power infrastructure.
The numbers: The investment vehicle, known as Global AI Infrastructure Investment Partnership (GAIIP), will initially seek to unlock USD30 billion ($44 billion) of private equity capital from investors, asset owners and corporates, with a view to mobilise up to USD100 billion in total investment including debt financing.
The context: The partnership plans to make investments in new and expanded data centres to meet growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities. These infrastructure investments will be chiefly in the US, the companies said, and the remainder will be invested in "US partner countries".
Chip maker Nvidia will support GAIIP, providing expertise in AI data centres and AI factories. The partnership will also engage with industry leaders to help enhance AI supply chains and energy sourcing.
What they said: Larry Fink, chair and CEO of BlackRock, said: "Mobilising private capital to build AI infrastructure like data centres and power will unlock a multi-trillion-dollar long-term investment opportunity".
"Data centres are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation," Fink said.
Microsoft chair and CEO Satya Nadella said: "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy".
"The Global AI Infrastructure Investment Partnership will help us deliver on this vision, as we bring together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way," he said.
Nvidia founder and CEO Jensen Huang said: "NVIDIA will use its expertise as a full stack computing platform to support GAIIP and its portfolio companies on the design and integration of AI factories to propel industry innovation".
Sheikh Tahnoon bin Zayed Al Nahyan, chair of Abu Dhabi-backed technology investor MGX, said: "Through this unique partnership, we will enable faster innovation, technological breakthroughs and transformational productivity gains across the global economy".
Bayo Ogunlesi, GIP chair and CEO, said: "There is a clear need to mobilise significant amounts of private capital to fund investments in essential infrastructure.
"One manifestation of this is the capital required to support the development of AI.
"We are highly confident that the combined capabilities of our partnership will help accelerate the pace of investments in AI-related infrastructure."
The source: Microsoft media release
