Sep 18, 2024 - Economy

BlackRock and Microsoft launch $30 billion AI infrastructure fund

Dan Primack

Microsoft HQ — Photo: David Ryder/Getty Images

BlackRock and Microsoft announced that they are part of a group seeking to form a $30 billion fund to invest in data centers and related energy infrastructure.

Why it matters: This is a recognition that the AI revolution requires massive compute power, which is rooted in the physical world.

Details: The initiative is called the Global AI Infrastructure Investment Partnership (GAIIP), and also includes Global Infrastructure Partners (which is being bought by BlackRock) and UAE-based investment firm MGX.

The plan is to raise a total of $30 billion, including via undisclosed commitments from the quartet, and that the total size could grow to $100 billion via leverage.
Despite Microsoft's involvement, GAIIP "will support an open architecture" and provide "full access on a non-exclusive basis for a diverse range of partners and companies."
NVIDIA will serve as an advisor.

What they're saying: "The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance." — Brad Smith, president of Microsoft

Go deeper: Powering AI data centers

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BlackRock and Microsoft launch $30 billion AI infrastructure fund

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