On Tuesday, Microsoft Corporation and asset manager BlackRock launched a groundbreaking $30 billion AI fund to invest in data centers and energy systems. They also plan to secure an additional $70 billion in financing to address the surging demand for AI technology.
This Global AI Infrastructure Investment Partnership is set to tackle the growing demand for cutting-edge computing power, supporting advanced AI technologies like deep learning and large-scale data processing.
Microsoft revealed that NVIDIA, renowned for its AI-processing GPUs, will be a key player in this initiative. Abu Dhabi’s MGX investment house will also join as a general partner.
The fund aims to mobilize up to $100 billion in total investment, including debt financing, to drive forward the AI revolution.
The initiative responds to the growing demand for AI development, which requires strong infrastructure to support the industry’s power needs. Despite their continuous hype and impact, generative AI programs also demand significant computing power, leading to substantial energy requirements.
As AI demand continues to rise, so does the need for data centers, making substantial energy sources crucial for meeting these growing requirements.
Brad Smith, Vice Chair and President of Microsoft:
“The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance.”
Microsoft has been heavily investing in AI over the past year, adding it to many of its products with continuous success. The company recently announced it plans to increase its spending on AI even more in the coming months.
