Elon Musk’s xAI, in partnership with Nvidia, has joined a $30 billion project designed to build artificial intelligence (AI) infrastructure. This initiative, known as the AI Infrastructure Fund, is supported by major players,s including BlackRock, Microsoft, and the Abu Dhabi-based investment group MGX. Announced on March 19, the fund aims to raise a total of up to $100 billion to facilitate AI advancements.
Jensen Huang, CEO and founder of Nvidia, articulated the importance of this infrastructure, stating that its development will support economic growth for various companies and nations while addressing significant global challenges. He emphasized that AI factories utilizing Nvidia’s comprehensive AI infrastructure would transform data into actionable intelligence, propelling advancements across industries and leading to remarkable societal improvements.
This announcement closely followed Huang’s remarks at the Nvidia developer conference, where he highlighted the urgent need for enhanced computing power to sustain AI’s evolving capabilities, particularly in the realm of agents and reasoning models.
He described the current phase of AI as a critical turning point, stressing that while traditional large language models operate efficiently with lesser computational demands, the new reasoning models require exponentially more computational intensity for processing. Huang noted that the responsiveness of AI systems hinges on a tenfold increase in computing speeds to maintain user engagement. He underscored the anticipated growth in demand for Nvidia’s GPUs, even in light of claims by other companies, such as Chinese startup DeepSeek, that they could achieve competitive results with fewer resources.
This collaboration is not the only initiative aiming to bolster AI infrastructure; a similar venture has been launched by SoftBank and OpenAI, with plans to invest around $100 billion in their “Stargate” project.
