Microsoft and BlackRock Join Forces to Raise $100 Billion for AI Infrastructure

Microsoft, BlackRock join hands to raise $100 billion for AI data centers

Microsoft and BlackRock have partnered to amass $100 billion in funds for the development and expansion of data centers to support AI growth and the energy infrastructure needed to power these facilities. According to a press release, the companies are part of the Global Artificial Intelligence Infrastructure Investment Partnership, or GAIIP, that seeks to address the growing demand for AI-powered data centers and sustainable energy infrastructure. The partnership also includes Global Infrastructure Partners (GIP), an infrastructure investor soon to be part of BlackRock, and MGX, a tech investor in the United Arab Emirates. With financial heavyweights and industry experts under one roof, GAIIP seeks to plug the funding gap for AI infrastructure development with an initial target of $30 billion in private equity capital and a long-term goal of $100 billion, according to the statement. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," Microsoft CEO Satya Nadella said in a statement. He added that the initiative brings "together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way." Microsoft has invested significantly in artificial intelligence, including more than $10 billion into OpenAI, the company behind ChatGPT. Microsoft revealed in July that its capital expenditures for the fourth quarter of the fiscal year, including assets acquired through financing leases, totaled $19 billion. "The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance," said Brad Smith, Vice Chair and President of Microsoft. He added that the financial partnership will help advance technology, national competitiveness, security, and economic prosperity. The primary focus of the partnership will be funding data center development and new power sources within the United States, with the remaining investments planned for partner countries. Nvidia, the top producer of AI chips, will support GAIIP, offering its expertise in AI data centers and AI factories to benefit the AI ecosystem, according to the release. Larry Fink, Chairman and CEO of BlackRock, said that "mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity." Earlier this year, BlackRock announced its plans to acquire GIP for $3 billion in cash and about 12 million shares of BlackRock common stock. It said last week that the deal is expected to close on Oct. 1.

Microsoft, BlackRock form group to raise $100 billion to invest in AI data centers and power

Microsoft Chairman and Chief Executive Officer Satya Nadella speaks during the Microsoft Build opening keynote in Seattle on May 21.Jason Redmond / AFP via Getty Images file Microsoft and BlackRock are part of a group of companies collaborating to pull together up to $100 billion to develop data centers for artificial intelligence and the energy infrastructure to power them. The companies are part of the Global Artificial Intelligence Infrastructure Investment Partnership, or GAIIP, which was announced in a press release on Tuesday. The other participants are Global Infrastructure Partners, or GIP, an infrastructure investor that is being acquired by BlackRock, and MGX, a tech investor in the United Arab Emirates. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," said Microsoft CEO Satya Nadella, in a statement. He said the initiative brings "together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way." The group aims to assemble $30 billion of initial capital, with a future goal of bringing in up to $100 billion, including from debt financing. Tech companies have been racing to build data centers full of Nvidia graphics processing units, or GPUs, that can run generative AI models such as those enabling OpenAI's ChatGPT chatbot. Those GPUs consume serious power, and soaring demand has created a bottleneck for standing up new facilities. Microsoft's investment comes on top of the capital expenditures needed to support infrastructure expansion for its Azure public cloud, which supplies OpenAI and other AI customers. Microsoft said in July that fiscal fourth-quarter capital spending, including assets acquired under finance leases, totaled $19 billion. In January, BlackRock announced its intent to acquire GIP for $3 billion in cash and around 12 million shares of BlackRock common stock. BlackRock said last week that it expects the deal to close Oct. 1.

Microsoft, BlackRock to launch $30bln fund for AI infrastructure

BlackRock and Microsoft plan to launch a more than $30 billion fund to invest in artificial intelligence infrastructure to build data centers and energy projects, the companies said on Tuesday. AI models, especially those used for deep learning and large-scale data processing, require substantial computational power, leading to higher energy consumption. The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching power, leading to a surge in the demand for these specialized data centers. The investment vehicle, known as Global AI Infrastructure Investment Partnership, aims to help enhance AI supply chains and energy sourcing, BlackRock and Microsoft said. MGX, the Abu Dhabi-backed investment company, will be a general partner in the fund, while AI chip firm Nvidia will provide expertise. The partnership will mobilize up to $100 billion in total investment potential when including debt financing, the companies said. The investments will be chiefly in the United States and the remainder in its partner countries, according to the companies. The Financial Times had first reported on the development. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta)

Microsoft, BlackRock to launch $30 billion fund for AI infrastructure

The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching power, leading to a surge in the demand for these specialized data centers. The investment vehicle, known as Global AI Infrastructure Investment Partnership, aims to help enhance AI supply chains and energy sourcing, BlackRock and Microsoft said. MGX, the Abu Dhabi-backed investment company, will be a general partner in the fund, while AI chip firm Nvidia will provide expertise. The partnership will mobilize up to $100 billion in total investment potential when including debt financing, the companies said. The investments will be chiefly in the United States and the remainder in its partner countries, according to the companies. The Financial Times had first reported on the development. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta)

Microsoft, BlackRock form group to raise $100 billion to invest in AI data centers and power

Microsoft CEO Satya Nadella speaks during the company's Build developer conference in Seattle on May 21, 2024. Microsoft and BlackRock are part of a group of companies collaborating to pull together up to $100 billion to develop data centers for artificial intelligence and the energy infrastructure to power them. The companies are part of the Global AI Infrastructure Investment Partnership (GAIIP), which was announced in a press release on Tuesday. The other participants are Global Infrastructure Partners (GIP), an infrastructure investor that's being acquired by BlackRock, and MGX, a tech investor in the United Arab Emirates. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," said Microsoft CEO Satya Nadella, in the statement. He said the initiative brings "together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way." The group aims to assemble $30 billion of initial capital, with a future goal of bringing in up to $100 billion, including from debt financing. Tech companies have been racing to build data centers full of Nvidia graphics processing units (GPUs) that can run generative AI models such as those enabling OpenAI's ChatGPT chatbot. Those GPUs consume serious power, and soaring demand has created a bottleneck for standing up new facilities. Microsoft's investment comes on top of the capital expenditures needed to support infrastructure expansion for its Azure public cloud, which supplies OpenAI and other AI customers. Microsoft said in July that fiscal fourth-quarter capital spending, including assets acquired under finance leases, totaled $19 billion. In January BlackRock announced its intent to acquire GIP for $3 billion in cash and around 12 million shares of BlackRock common stock. BlackRock said last week that it expects the deal to close on Oct. 1.

Microsoft, BlackRock Set Up $30B AI Infrastructure Fund Investing Mainly in US

The money would be used for data centers and energy infrastructure, chiefly in the U.S. Microsoft (MSFT) and BlackRock (BLK), the world's largest asset manager, announced plans to raise a $30 billion artificial intelligence (AI) infrastructure fund to build data centers and related energy projects mainly in the U.S. The two companies, together with investment companies Global Infrastructure Partners and MGX, will raise the initial private equity funding from investors, asset owners, and corporations. The grouping could then invest up to $100 billion when debt financing is included. The partnership, called the Global AI Infrastructure Investment Partnership (GAIIP), will invest in "new and expanded data centers to meet growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities." Microsoft CEO Satya Nadella added that GAIIP is "committed to ensuring AI helps advance innovation and drives growth across every sector of the economy." The tech giant faces pressure to show its spending on AI is paying off for investors. The market saw Microsoft shares rise for the seventh consecutive session on Tuesday after the company announced a $60 billion stock buyback program Monday. The announcement noted that the money would mostly be spent in the U.S. "fueling AI innovation and economic growth, and the remainder will be invested in U.S. partner countries." Blackrock CEO Larry Fink said that getting private capital to build data centers and other AI infrastructure "will unlock a multi-trillion-dollar long-term investment opportunity." BlackRock shares rose 1.4% midday Wednesday while Microsoft stock was down .65%.

Microsoft, Blackrock plan $30 bln fund for AI infrastructure By Investing.com

Investing.com-- Microsoft Corporation (NASDAQ:MSFT) and asset manager BlackRock Inc (NYSE:BLK) said they will launch an over $30 billion fund to invest in artificial intelligence infrastructure such as data centers and energy hubs, the two said in a statement on Tuesday. The partnership will be called the Global AI Infrastructure Investment Partnership, and will invest chiefly in U.S.-based projects to keep AI development within the country. Microsoft said AI darling NVIDIA Corporation (NASDAQ:NVDA) will support the partnership, and that Abu Dhabi investment house MGX will be a general partner in the fund. The fund plans to mobilize up to $100 billion in total investment when including debt financing. The move comes as growing interest in AI development pushes the need for more infrastructure to power the industry. The generative AI programs that shot into popularity over the past year require high amounts of computing power, which in turn fuels large energy requirements. Demand for data centers is expected to pick up substantially as AI demand grows, as is the need for sustainable energy sources. "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, Vice Chair and President of Microsoft said in a statement. Microsoft has leaned heavily into AI over the past year, incorporating it into a slew of its products to varying degrees of success. The company recently said it plans to ramp up capital spending on AI even further over the coming quarters.

Blackrock prepares $30bn AI infrastructure fund with Microsoft

Microsoft says this fund has up to $100bn in total investment potential and aims to create new data centres to meet the growing demand for computing power and AI. Microsoft has announced a new partnership with investment giant Blackrock that will invest in data centres to support the growth of AI. This AI fund is being led by Blackrock and includes Global Infrastructure Partners and MGX - along with support from Nvidia. This partnership plans to raise $30bn of private equity capital over time from investors, asset owners and corporates. The partners believe this will mobilise up to $100bn in total investment potential when including debt financing. The funding will be primarily focused in the US, investing in new and expanded data centres to meet the growing demand for computing power, as well as the energy infrastructure to support these facilities. This partnership - called the Global AI Infrastructure Investment Partnership - will also invest some of its funding into "US partner countries". "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," said Microsoft chair and CEO Satya Nadella. "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." BlackRock has a broad network of corporate relationships which it plans to use to raise the funding. It also is in the process of closing a massive acquisition of Global Infrastructure Partners. "Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity," said Blackrock chair and CEO Larry Fink. "Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation." Data centres continue to be a hot topic around the world, being a vital component for advanced technology such as AI. But these centres are also sucking up vast amounts of energy - they consumed more than a fifth of Ireland's electricity last year. There has also been some concern among investors earlier this year around the focus Big Tech is placing on AI. The shares of the 'Magnificent Seven' - Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla - all fell earlier this year, with one concern among investors being potential issues around AI profitability. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

Microsoft, BlackRock to launch $100 billion AI partnership for data centres and power | bobsguide

Microsoft and BlackRock have announced the formation of the Global AI Infrastructure Investment Partnership (GAIIP), a new venture targeting an initial capital raise of $30 billion. This initiative, announced on September 17, 2024, aims to develop and expand data centres and energy infrastructure, with the potential to mobilise up to $100 billion through additional debt financing. The partnership, which also includes Global Infrastructure Partners (GIP) and MGX, a technology investment firm based in Abu Dhabi, reflects a concerted effort to address the soaring demand for computational power required by advanced AI technologies. As AI models, particularly those involved in deep learning and large-scale data processing, continue to evolve, the need for robust and scalable infrastructure becomes increasingly critical. Microsoft and BlackRock's collaboration is expected to drive significant advancements in AI infrastructure. The investment will primarily focus on the United States, with additional projects planned for partner countries. This expansive approach is designed to enhance AI supply chains, improve energy sourcing, and support the growing ecosystem of AI technologies. Satya Nadella, CEO of Microsoft, emphasised the transformative nature of the initiative: "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 by bringing together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way." The initiative also highlights the crucial role of energy infrastructure in supporting AI development. With AI models, such as those utilised by OpenAI's ChatGPT, demanding immense computational power, there is a pressing need for new data centres and energy sources. This growing requirement for specialised infrastructure has created a bottleneck in the tech industry, underscoring the importance of this new investment. BlackRock's Chairman and CEO, Larry Fink, remarked on the broader economic impact of the initiative: "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." The partnership also benefits from the expertise of Nvidia, a leading AI chip maker, which will contribute its knowledge in AI data centres and AI factories. Nvidia's CEO, Jensen Huang, noted the accelerating demand for AI infrastructure, stating, "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." MGX, launched earlier this year with support from Abu Dhabi's Mubadala and AI firm G42, brings a strategic focus on AI and advanced technologies. His Highness Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of MGX, highlighted the significance of AI for future economic growth: "Artificial intelligence is not just an industry of the future; it underpins the future. Through this unique partnership, we will enable faster innovation, technological breakthroughs, and transformational productivity gains across the global economy."

AI News: Microsoft & BlackRock Partner to Launch $30 Billion AI Infrastructure Fund

Nvidia advised on AI-related factory design as AI's energy consumption strained existing infrastructure. BlackRock is gearing up to introduce an ambitious investment fund exceeding $30 billion, in collaboration with Microsoft. The fund is aimed at developing data centers and energy projects to support the expanding demands of artificial intelligence (AI) technology. Moreover, the partnership represents one of the largest investment vehicles ever created on Wall Street, signaling financial interest in AI infrastructure. The new fund will be managed by BlackRock's recently acquired infrastructure unit, Global Infrastructure Partners (GIP). Microsoft and MGX, an Abu Dhabi-based investment firm, are acting as general partners for the fund. Meanwhile Nvidia, the leading AI chipmaker, is offering guidance on the design and integration of factories. This massive initiative, dubbed the Global AI Investment Partnership, will tackle the increasing demands for digital infrastructure and energy brought on by the explosive growth of AI. Furthermore, the infrastructure demands of AI have placed unprecedented strain on energy resources. The advanced computational power needed to run AI models consumes significantly more energy than past technologies. It led to concerns about capacity bottlenecks. As a result, this investment fund seeks to relieve these concerns by building the necessary energy and computing infrastructure to support AI advancements. BlackRock plans to raise up to $30 billion in equity for the fund. Whilst an additional $70 billion in debt financing will be sought. This total $100 billion investment will be used to fund AI-related infrastructure, such as data centers and renewable energy projects. The investment aligns with the asset manager's focus on the energy sector as a significant growth opportunity. Larry Fink, CEO of BlackRock, emphasized the potential of the AI sector. He stated, "Mobilising private capital to build AI infrastructure like data centres and power will unlock a multitrillion-dollar long-term investment opportunity." This move also comes after the asset manager's agreement to acquire GIP for $12.5 billion earlier this year, a deal set to be finalized by October. The acquisition positions organization as a dominant force in infrastructure investments. Microsoft, which has been heavily investing in AI and renewable energy, has made significant commitments toward green energy goals. The tech giant previously agreed to support $10 billion worth of renewable energy projects with Canada's Brookfield Asset Management. It also has committed to matching 100% of its energy consumption with zero-carbon energy by 2030. Microsoft President Brad Smith commented on the importance of large-scale investments in AI infrastructure. According to a Financial Times report, he said, "The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed. This kind of effort is an important step."

BlackRock, Global Infrastructure Partners, Microsoft, MGX launch AI partnership

BlackRock , Microsoft and United Arab Emirates state-backed investor MGX are partnering on a new artificial-intelligence infrastructure fund that aims to raise $30 billion to invest in data centers and related power infrastructure. After raising the private-equity capital from investors, the partnership could deploy up to $100 billion in total capital when including debt financing, the parties said Tuesday. Most of the infrastructure investments will be made in the U.S. The systems powering new AI products are highly energy intensive. The recent frenzy to build data centers to serve the exploding demand for AI is causing a shortage of the parts, property and power that the sprawling warehouses of supercomputers require. Microsoft and other big tech players have been investing billions in their own data centers. The new partnership -- dubbed the Global AI Infrastructure Investment Partnership -- will pool capital from investors like pension funds and insurance companies that seek steady, modest returns from private infrastructure investments. It will finance projects across the AI infrastructure ecosystem, including energy infrastructure. By 2030, data centers alone could increase U.S. power demand by 8% , researchers say. The goal is to finance some of the capital intensive infrastructure needs with money from outside the tech sector, BlackRock Chief Executive Larry Fink said in an interview. "We're providing the vehicle in which the AI hyper-scalers can use their capital elsewhere and we have the pension funds and insurance companies invest in the infrastructure and enjoy the long-term returns that are perfect for their retirement plans," Fink said. Microsoft is investing in the fund, though the companies declined to reveal how much. The partnership will provide full-access on a nonexclusive basis to a range of companies that want to lease data centers and other infrastructure. "We see artificial intelligence as a fundamental driver of economic growth for the country," Brad Smith , vice chair and president of Microsoft, said in an interview. "And all of this needs to be built out in order for the country to expand." If it reaches its goal, the fund would be the biggest alternative investment fund ever raised by BlackRock. The world's largest asset manager has been pushing into the more lucrative world of managing private investments over the past few years. BlackRock spent $12.5 billion to acquire alternative investment firm Global Infrastructure Partners earlier this year, which will also be a partner in the new fund. BlackRock estimates that trillions of dollars are needed to finance the growth of data centers and energy resources long term. -- Miriam Gottfried and Tom Dotan contributed to this article.

Microsoft, BlackRock form fund to back AI infrastructure

Tech is going to need datacenters and power sources, and a lot of 'em Microsoft is joining with BlackRock and other private equity investors in a new AI fund that aims to eventually raise $100 billion for datacenters and their supporting power infrastructure. The Redmond-based megacorp today confirmed the Global AI Infrastructure Investment Partnership (GAIIP) along with BlackRock, Global Infrastructure Partners (GIP) and MGX, which is based in the United Arab Emirates (UAE) and chaired by a member of Abu Dhabi's royal family. The fund intends to make investments in new bit barns and expand existing sites to meet customers ever-growing demand for compute, as well as to sink money into in energy infrastructure to provide fresh sources of power for the facilities. The agreement will initially look to raise $30 billion of private equity capital from investors, and the alliance ultimately hopes to take that figure to $100 billion in total, including debt financing. Investments are to be chiefly in the US, Microsoft says, and the remainder will be in "US partner countries," an annoyingly vague term that could mean almost anywhere in the world - although we would bet on some going to the UAE, given MGX's involvement. According to the participants, the idea is to build datacenters using "an open architecture and broad ecosystem," with GPU giant Nvidia also supporting the project. This could mean that any newly created infrastructure will be built around Nvidia's specialized DGX AI servers, or that the company is simply ready to supply GPU accelerators and software for the project. Nvidia CEO Jensen Huang trilled in a canned statement: "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." It isn't clear if any of the investment will be going towards Microsoft's own existing network of datacenters, or if the resulting infrastructure will be separate. We asked the company for clarification, and will update if we get an answer. Microsoft has already ploughed cash into AI and the datacenter construction to support it, with reports last year that it was earmarking "many billions of dollars" for expansion. Earlier this year, The Reg reported that Microsoft was planning to triple its growth in additional DC capacity during the first half of its fiscal year 2025, which started in July. The Windows biz is also understood to be in talks with AI developer OpenAI to construct a massive supercomputer codenamed Stargate that would feature millions of AI accelerators at a cost of up to $100 billion. In fact, the company has been building so much additional infrastructure that it has increased its own carbon dioxide emissions by nearly 30 percent, largely due to indirect emissions (Scope 3) from the construction projects. The other part of this investment agreement concerns power, or meeting the unquenchable thirst for extra energy infrastructure to support the expanding fleet of AI bit barns. However, details here are remain vague. Concerns continue to be raised about the amount of energy consumed by AI, particularly in training large models that require a hefty amount of powerful compute infrastructure. One researcher warned last year that AI could soon consume as much electricity as a country such as Ireland, while another report this year forecast that AI might cause datacenters to account for 20 to 25 percent of the US power grid by 2030. All of this led the CEO of global datacenter operator DigitalBridge to warn in May that power has become the constraining factor for continued growth. This looming shortfall has forced datacenter operators to pursue a number of strategies to ensure they can access enough energy to power them, with AWS taking over a facility built next to a nuclear power plant in Pennsylvania. Microsoft itself is interested in developing small modular reactor (SMR) tech to provide power for its server farms, even hiring a director of nuclear technologies to oversee the project at the start of this year. However, most of the exploits disclosed by operators are to invest in companies planning to produce renewable energy to feed into the grid, such as the recent deal between Meta and Sage Geosystems for geothermal energy. Others include wind and solar projects. Microsoft chief Satya Nadella said his company is committed to ensuring AI helps advance innovation and drives growth across the economy - and no doubt please shareholders in the process. "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." ®

Microsoft-BlackRock team to raise USD100 bn for AI data centers

SAN FRANCISCO (AFP) - Microsoft and investment powerhouse BlackRock on Tuesday said they have teamed up to raise as much as USD100 billion for data centers and infrastructure to power artificial intelligence. The alliance includes Global Infrastructure Partners and the advanced technology investment firm MGX, created in Abu Dhabi this year, according to a joint release. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," said Microsoft chief executive Satya Nadella. "The Global AI Infrastructure Investment Partnership will help us deliver on this vision." Microsoft has invested heavily in artificial intelligence, including pouring more than $10 billion into ChatGPT-maker OpenAI. "The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance," said Microsoft president Brad Smith. The partnership will initially seek USD30 billion of private equity capital from investors, looking to ramp up that amount as high as USD100 billion including debt financing, according to the companies. Investments in expanding or building data centers and creating new sources of power for them will be mostly focused in the United States, with the remainder made in US partner countries, according to the group. Leading AI chip maker Nvidia will support the partnership with expertise, and Microsoft will provide technical advice along with funding, the release said. "Accelerated computing and generative AI are driving a growing need for AI infrastructure for the next industrial revolution," Nvidia chief executive Jensen Huang said in the release.

BlackRock and Microsoft join forces to invest up to $100B into AI infrastructure - SiliconANGLE

BlackRock and Microsoft join forces to invest up to $100B into AI infrastructure BlackRock Inc. and Microsoft Corp. are part of a new group that plans to invest up to $100 billion to build data centers and energy projects to support the rapid development of artificial intelligence. The investments will be made under the newly launched Global AI Infrastructure Investment Partnership, a partnership that includes Global Infrastructure Partners - an infrastructure investment company acquired by BlackRock for $12.5 billion in January, BlackRock itself, Microsoft and Dubai investment company MGX. The partnership will make investments in new and expanded data centers to meet the growing demand for computing power, as well as energy infrastructure to create new sources of power for these facilities. The investments will be primarily made in the U.S., with the remainder to be invested in "U.S. partner countries." According to a press release from GIP, the partnership will support an open architecture and broad ecosystem, providing full access on a non-exclusive basis for a diverse range of partners and companies. While not listed as an investor, the fund will also be advised on factory design and integration by Nvidia Corp., the world's largest AI chip maker. The new partnership also plans to actively engage with industry leaders to help enhance AI supply chains and energy sourcing for the benefit of its customers and the industry. GAIIP intends to seek to unlock $30 billion in private equity capital over time from investors, asset owners and corporates for its initial investments, which in turn will mobilize up to $100 billion in total investment potential when including debt financing. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," Satya Nadella, chairman and chief executive officer of Microsoft, commented on the partnership. "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." Microsoft's participation in the group comes after it has already made multiple investment commitments to building AI-related infrastructure this year. On May 2, Microsoft committed $2.2 billion to build cloud and AI infrastructure in Malaysia, followed on May 4 by a $3.3 billion commitment to build an AI data center in Wisconsin. In June, Microsoft announced its plans to spend $3.2 billion to expand data center capacity in Sweden, including support for AI. Microsoft's biggest external investment into AI so far has been its relationship with OpenAI, where it has now invested approximately $13 billion since 2019, with possibly more funding on its way.

BlackRock and Microsoft plan $30bn fund to invest in AI infrastructure

BlackRock is preparing to launch a more than $30bn artificial intelligence investment fund with technology giant Microsoft to build data centres and energy projects to meet growing demands stemming from AI, people briefed about the matter said. The fund, which BlackRock is launching with its new infrastructure investment unit, Global Infrastructure Partners, would be one of the biggest investment vehicles ever raised on Wall Street. Microsoft and MGX, the Abu Dhabi-backed investment company, are general partners in the fund. Nvidia, the fast-growing chipmaker, was providing expertise, the people said. The investment vehicle is aimed at addressing the staggering power and digital infrastructure demands of building AI products that are expected to face severe capacity bottlenecks in coming years, according to people briefed about the matter. The computing power of AI requires far more energy than previous technological innovations and has strained existing energy infrastructure. The fund would mark GIP's first big fund since the private infrastructure investment group agreed to be acquired by BlackRock for $12.5bn earlier this year. That deal is due to close in October. BlackRock, the world's largest money manager, has highlighted the energy sector as one of its top opportunities for growth. Chief executive Larry Fink wrote to investors earlier this year, that "in my nearly 50 years in finance, I've never seen more demand for energy infrastructure". The soon-to-be launched fund is the latest vehicle created by a large asset manager to meet the ever-growing demand for energy to power generative AI and cloud computing. Earlier this year Microsoft agreed to back $10bn in renewable electricity projects built by Canada's Brookfield Asset Management. Microsoft has made a commitment to ensure 100 per cent of its energy consumption is matched by zero carbon energy purchases by 2030. "The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed. This kind of effort is an important step," said Brad Smith, Microsoft's president. In 2017, Blackstone announced plans for a $40bn infrastructure vehicle with backing from Saudi Arabia, and Brookfield last year raised $28bn for what was described as the largest ever infrastructure fund. The International Energy Agency estimates that global electricity consumption by data centres could surpass 1,000 terawatt-hours by 2026, more than twice the amount used in 2022. In the US, which hosts one-third of the world's data centres, electricity demand is rising rapidly for the first time in two decades, driven partly by these energy-intensive facilities. A report from Grid Strategies indicates that five-year projections for electricity demand growth in the US have nearly doubled over the past year, increasing from 2.6 per cent to 4.7 per cent. Nvidia and MGX did not immediately respond to requests for comment. BlackRock declined to comment.

Microsoft, BlackRock to launch $30 bln fund for AI infrastructure

Reuters is an international news organisation owned by Thomson Reuters BlackRock (BLK.N), opens new tab and Microsoft (MSFT.O), opens new tab plan to launch a more than $30 billion fund to invest in artificial intelligence infrastructure to build data centers and energy projects, the companies said on Tuesday. AI models, especially those used for deep learning and large-scale data processing, require substantial computational power, leading to higher energy consumption. The computing requirements for AI have dictated that tech companies string together thousands of chips in clusters to achieve the necessary amount of data crunching power, leading to a surge in the demand for these specialized data centers. The investment vehicle, known as Global AI Infrastructure Investment Partnership, aims to help enhance AI supply chains and energy sourcing, BlackRock and Microsoft said. Read more: Artificial intelligence spells danger for Hollywood stunt workers MGX, the Abu Dhabi-backed investment company, will be a general partner in the fund, while AI chip firm Nvidia (NVDA.O), opens new tab will provide expertise. The partnership will mobilize up to $100 billion in total investment potential when including debt financing, the companies said. The investments will be chiefly in the United States and the remainder in its partner countries, according to the companies. The Financial Times had first reported on the development.

Building the AI Future: Microsoft and BlackRock's $100 Billion AI Investment Plan

Microsoft and BlackRock are teaming up to make a transformative impact on the future of artificial intelligence (AI). The two global giants, together with other investors, have launched the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP). This initiative aims to raise up to $100 billion in funding to build AI-powered data centers and the necessary energy infrastructure to power them. The project has an initial fundraising goal of $30 billion, which will lay the foundation for an infrastructure that will support the growing demand for AI technologies across various industries. Microsoft, known for its leadership in software and cloud technologies, and BlackRock, the world's largest asset manager, have joined forces in what could become one of the largest investments in AI infrastructure to date. Their partnership, GAIIP, was created to address the ever-growing demand for computing power needed to run advanced AI models, such as OpenAI's ChatGPT, and other generative AI technologies. The first phase of this fundraising effort is set at $30 billion, with the total goal eventually reaching $100 billion. These funds will be directed towards building new data centers equipped with the latest hardware -- predominantly Nvidia GPUs, which are critical for running complex AI algorithms. Moreover, the capital raised will also go toward enhancing the energy infrastructure that powers these data centers, ensuring they can meet the substantial power needs of AI workloads. AI technologies are increasingly shaping various sectors, from healthcare to finance, entertainment, and beyond. For AI models to function efficiently, they require enormous computational resources. The surge in popularity of AI-driven applications, particularly generative AI like ChatGPT, has put immense pressure on existing data centers and the energy resources they rely on. The problem lies in the bottleneck created by the high demand for Nvidia GPUs, which are essential to process AI tasks. As companies race to build more data centers to run AI models, the challenge of acquiring enough GPUs and power infrastructure has become more apparent. Microsoft and BlackRock's $100 billion initiative will be pivotal in meeting these growing demands, enabling continued innovation in AI technologies. A key component of the GAIIP initiative is sustainability. Microsoft CEO Satya Nadella has emphasized the need for the partnership to not only build advanced infrastructure but also ensure that it is sustainable. AI workloads are incredibly energy-intensive, consuming vast amounts of electricity to process billions of data points and deliver outputs. To mitigate this, part of the funds raised will be invested in developing energy infrastructure that can sustainably power the AI data centers. This could include investments in renewable energy sources like wind and solar, as well as advancements in energy-efficient cooling and storage technologies. These efforts align with Microsoft's broader environmental goals, which include becoming carbon negative by 2030. The sustainability aspect of the project is crucial, as the world grapples with the environmental impact of technology growth. By prioritizing energy-efficient data centers, Microsoft and BlackRock aim to reduce the carbon footprint of AI while enabling its continued development. This $100 billion investment push will have a ripple effect across the technology sector, particularly in the AI space. Microsoft's Azure cloud platform, which already serves clients like OpenAI, is set to be one of the primary beneficiaries of this expanded infrastructure. As Azure grows to accommodate the increasing computational needs of AI companies, Microsoft will be better positioned to dominate the AI and cloud services market. Beyond Azure, the entire technology industry stands to benefit. Increased data center capacity means more companies will be able to access the computing power needed to develop and deploy AI-driven solutions. From AI startups to established tech firms, the expansion of infrastructure will foster innovation and growth across the board. At the same time, the initiative will likely accelerate the shift towards a more sustainable tech industry. By investing in renewable energy and energy-efficient data centers, Microsoft and BlackRock are setting an example for other tech companies to follow, aligning economic growth with environmental responsibility. In conclusion, the partnership between Microsoft and BlackRock represents a major leap forward in the AI industry's development. By mobilizing up to $100 billion in capital, they are not only addressing the immediate need for more AI data centers but also ensuring that the infrastructure powering AI is sustainable. This bold investment strategy will have lasting impacts on AI innovation, energy consumption, and the future of technology as a whole.

Microsoft and BlackRock to launch $30 billion fund for AI infrastructure

BlackRock is planning to launch a more than $30 billion artificial intelligence investment fund with Microsoft to build data centers and energy projects to meet growing AI-related demands. MGX, the Abu Dhabi-backed investment company, will be a general partner in the fund, while AI chip firm Nvidia will provide expertise. Published - September 18, 2024 09:50 am IST Read Comments

BlackRock, Microsoft, Others Team Up For $30B Artificial Intelligence Fund: Help US Fuel 'AI Innovation And Economic Growth' - Microsoft (NASDAQ:MSFT)

The partners are looking to grow the U.S.'s position in AI data centers and power generation. Technology giant Microsoft Corporation MSFT is teaming up with investment company BlackRock and several other partners on a new $30 billion investment fund to target the growing artificial intelligence sector. What Happened: The new investment, which adds to Microsoft's growing bets on the AI space, includes the participation of BlackRock, Global Infrastructure Partners and MGX. The investment fund, called Global AI Infrastructure Investment Partnership (GAIIP), will invest in data centers and supporting power infrastructure. The fund will make investments "in new and expanded data centers to meet growing demand for computing power." The fund partners said the investments will help the U.S. fuel "AI innovation and economic growth." Investments will also be made in U.S. partner countries. The announcement said NVIDIA Corp NVDA will support the newly formed GAIIP by offering "its expertise in AI data centers and AI factories to benefit the AI ecosystem." "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," Nvidia CEO Jensen Huang said. While the fund initially seeks to invest $30 billion from investors, asset owners and corporations, the total investment could hit $100 billion when debt financing is included. "Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity," BlackRock CEO Larry Fink said. "Data centers are the bedrock of the digital economy." Microsoft CEO Satya Nadella said the investment shows the company's commitment to advancing AI. "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," Nadella said. Read Also: Microsoft Q4 Earnings Highlights: Revenue Beat, EPS Beat, Cloud Revenue Up 21% YoY, 'Ensuring We Lead The AI Era' Why It's Important: The new investment group will seek to improve the competitiveness of the U.S. in the AI space along with meeting the increased need for energy infrastructure. The partnership brings in companies involved in the field of AI or experienced in securing investments from outside parties, which could make a winning combination. With the growing demand for artificial intelligence capabilities, investments continue to flow to the sector. The new investment group could attract strong interest given the notable names involved. Read Next: Emerging AI Trends In 2024: BlackRock Sees Shift Beyond Semiconductors, Cloud To Model Infrastructure Market News and Data brought to you by Benzinga APIs

Microsoft, BlackRock to Launch $30 Billion Fund to Invest in Data Centers, Power for AI

Microsoft and BlackRock said Tuesday they are planning a $30 billion fund to develop data centers and power plants to power artificial intelligence. The fund would be one of the largest of its kind, though it isn't clear how much Microsoft is contributing and shows how the company is enlisting another longtime real estate and data center investor, BlackRock, rather than go it alone as AI costs

BlackRock and Microsoft are reportedly planning a $30B AI-focused megafund | TechCrunch

Investment powerhouse BlackRock is set to launch a massive AI-focused investment fund, exceeding $30 billion, in collaboration with Microsoft and the Abu Dhabi-backed investment outfit MGX, the FT reported today. According to the outlet, the fund -- among Wall Street's largest -- will focus on creating data centers and funding energy infrastructure to support AI. Chip giant Nvidia is also reportedly contributing its expertise around the energy demands of AI technologies, which are expected to face significant capacity constraints in the coming years. BlackRock is launching the fund with Global Infrastructure Partners (GIP), which BlackRock agreed to acquire for $12.5 billion in a deal back in January. GIP is now BlackRock's infrastructure investment unit.

Blackrock, Microsoft join hands to raise $30 billion for AI investments

"The need to build out data centers globally is multi-trillions of dollars to finance," BlackRock Chief Executive Officer Larry Fink said in an interview, adding that the Global AI Infrastructure Investment Partnership has been months in the making. "This is just a great example of the capital markets building out infrastructure and building out the opportunities and new technologies."

Microsoft-Backed Partnership Aims to Raise $100 Billion for AI Infrastructure | PYMNTS.com

The Global AI Infrastructure Investment Partnership (GAIIP) includes Microsoft; BlackRock; Global Infrastructure Partners (GIP), which is an infrastructure investor that is set to be acquired by BlackRock on Oct. 1; and MGX, which is a technology investment company focused on partnerships in the United Arab Emirates (UAE) and globally, the companies said in a Tuesday (Sept. 17) press release. The partnership will initially seek to unlock $30 billion of private equity capital over time and then mobilize up to $100 billion in total investment potential, including debt financing, according to the release. The infrastructure investments will be made in the U.S. and in U.S. partner countries, per the release. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," Microsoft Chairman and CEO Satya Nadella said in the release. "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." BlackRock Chairman and CEO Larry Fink added in the release: "Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multitrillion-dollar long-term investment opportunity. Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs and drive AI technology innovation." MGX was launched in March by two founding partners -- global investment company Mubadala and AI firm G42 -- to invest in the development and adoption of AI and advanced technologies, both in the UAE and globally, with a focus on AI infrastructure, AI core technologies and AI applications. According to the Tuesday press release about the launch of the partnership, Nvidia will support GAIIP with expertise in AI data centers and AI factories. Other industry leaders will also be invited to help enhance AI supply chains and energy sourcing. This news comes on the same day that the White House announced the formation of a new task force aimed at enhancing the development of data centers in response to the burgeoning needs of AI infrastructure.

BlackRock, Microsoft Aim to Raise $30 Billion for AI Investments

BlackRock Inc. and Microsoft Corp. are teaming up to invest in data centers and other infrastructure supporting artificial intelligence. The strategy, dubbed the Global AI Infrastructure Investment Partnership, will aim to attract $30 billion of private equity capital, leveraging that to as much as $100 billion to invest, the companies said in a statement Tuesday.

BlackRock, Global Infrastructure Partners, Microsoft, MGX Launch AI Partnership

BlackRock, Global Infrastructure Partners, MGX and Microsoft will invest up to $100 billion expanding and building artificial-intelligence data centers. The partnership, called the Global AI Infrastructure Investment Partnership, will additionally build out energy infrastructure to create power sources for the facilities, the companies said Tuesday. New York investment firms BlackRock and Global Infrastructure Partners; MGX, a United Arab Emirates state-backed company created earlier this year to invest in artificial-intelligence projects; and tech giant Microsoft said the partnership will initially seek $30 billion of private equity capital. Total investment potential will increase up to $100 billion including debt financing, they added. Nvidia will support the partnership, providing expertise in AI data centers and factories. The partnership will additionally benefit from Microsoft's involvement, and will also engage with industry leaders to enhance AI supply chains and energy sourcing. Most of the infrastructure investments will be made in the U.S., though some will be in U.S. partner countries. "Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity," said Larry Fink, BlackRock's chairman and top executive.

BlackRock, Microsoft Aim to Raise US$30 Billion for AI Investments

(Bloomberg) -- BlackRock Inc. and Microsoft Corp. are teaming up to invest in data centers and other infrastructure supporting artificial intelligence. The strategy, dubbed the Global AI Infrastructure Investment Partnership, will aim to attract US$30 billion of private equity capital, leveraging that to as much as $100 billion to invest, the companies said in a statement Tuesday. "Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-dollar long-term investment opportunity," BlackRock Chief Executive Officer Larry Fink said in the statement. The Financial Times reported the partnership earlier.

Partnership Could Put $100B Into AI Data Center Infrastructure

As AI technology advances, it's putting ever-increasing strain on existing data centers and associated power sources. To keep up, we'll need to build a lot more infrastructure. That's the broad thinking behind an effort announced today, the Global AI Infrastructure Investment Partnership, that seeks to put up to $100 billion in private equity and debt financing into building and expanding data centers. Participants include Microsoft, Blackrock, Global Infrastructure Partners and United Arab Emirates AI-focused investment fund MGX. The partnership plans to invest primarily in the U.S., although it may pursue some investments in what it called "partner countries." The partnership says it will seek to raise and put to work up to $30 billion in private equity financing, with up to $100 billion in total investment including debt. It will also draw support from Nvidia, which plans to offer expertise in the design and integration of AI infrastructure. The effort comes amid a boom time for data infrastructure assets. Shares of leading data center REITs, such as Digital Realty Trust and Equinix are up sharply over the past two years. And tech giants like Microsoft, Amazon and Meta are building and planning giant facilities across the U.S. Just earlier this summer, Microsoft said it spent $55.7 billion on capital expenditures for its fiscal year -- up 75% from the prior year -- primarily to build data centers. Power-hungry data centers are also putting increasing pressure on existing energy infrastructure. Per Goldman Sachs, AI is poised to drive a 160% increase in data center power demand by 2030. Partly that is because AI is an energy-intensive offering. Goldman estimates that on average, a ChatGPT query needs nearly 10x as much electricity to process as a Google search. As AI offerings get more advanced, it's likely power demands will be even more intensive.

Microsoft, BlackRock to launch $30 billion fund for AI infrastructure

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MGX, Microsoft, BlackRock team up to launch $30bn AI fund

Image credit: Jason marz/ Getty Images Abu Dhabi tech investment firm MGX has teamed up with BlackRock, Global Infrastructure Partners (GIP), and Microsoft to launch a $30bn fund that will invest in artificial intelligence to build data centres and energy projects. The companies said in a statement that the investment vehicle, known as the Global AI Infrastructure Investment Partnership, aims to enhance AI supply chains and energy sourcing. The partnership will mobilise up to $100bn in total investment potential, including debt financing. The infrastructure investments, which seek to fuel AI innovation and economic growth, will be chiefly in the US and the remainder in its partner countries. The plan includes bringing on additional investors, and pensions and insurers are eager for such long-term infrastructure investments. MGX will be a general partner in the fund, while AI chip firm Nvidia will provide expertise, the statement added. "Artificial intelligence is not just an industry of the future; it underpins the future. Through this unique partnership, we will enable faster innovation, technological breakthroughs and transformational productivity gains across the global economy," said Sheikh Tahnoon bin Zayed Al Nahyan, chairman of MGX. AI models, especially those used for deep learning and large-scale data processing, resulting in increased energy consumption. To meet AI's computing needs, tech companies have resorted to connecting thousands of chips in clusters to achieve the requisite data-crunching capacity. This has fueled a surge in demand for these specialised data centres. The UAE created MGX in March to invest in AI companies and the infrastructure required to make the technology more widely available. It counts sovereign wealth fund Mubadala Investment and G42 as its founding partners. The investment firm is reportedly in talks with OpenAI as part of a multibillion-dollar fundraising round for the startup behind ChatGPT. Read: UAE's G42, Microsoft to build two AI centres in Abu Dhabi

AI's $100 Billion Data Center Push May Rewire Global Commerce | PYMNTS.com

A newly formed coalition of tech and finance titans is betting $100 billion that artificial intelligence (AI) could alter global trade infrastructure, launching an ambitious plan to build a network of AI-ready data centers that could reshape how businesses operate worldwide. The Global AI Infrastructure Investment Partnership, spearheaded by Microsoft, BlackRock and others, signals a shift in the commercial landscape. Investments in AI-focused data centers could accelerate the technology's adoption across industries, potentially transforming supply chains, financial services and customer interactions. "AI-enabled data centers will exponentially accelerate transaction speeds by optimizing data flow and reducing latency," Tim Peters, chief marketing officer at software company Enghouse Systems, told PYMNTS. "AI has already shown the ability to increase supply chain forecasting accuracy by up to 20-50%. These efficiencies will boost eCommerce platforms' ability to handle surges in demand, allowing retailers to deliver superior customer experiences. With the rise of 5G, this infrastructure will enhance real-time product recommendations, improve voice-activated shopping and personalized customer journeys at unprecedented scales." The partnership, backed by tech giants Microsoft and Nvidia and financial powerhouses Blackrock and Global Infrastructure Partners, aims to tackle the strain on existing data centers and power sources caused by advancing AI technology. "We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy," Satya Nadella, the chairman and CEO of Microsoft, said in a news release. "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." The initiative plans to raise up to $30 billion in private equity financing and invest up to $100 billion, including debt. While the focus will be primarily on U.S. investments, the partnership said in the announcement that it may also pursue opportunities in other countries. The new data center initiative is timely, as AI's power demands are expected to surge. For instance, Goldman Sachs estimates there will be a 160% increase in data center power consumption by 2030. AI data centers have proliferated to meet increasing computational demands. They feature specialized hardware like GPUs optimized for AI workloads. Major tech companies are investing billions in expanding and improving these data center facilities. Energy efficiency and cooling are vital concerns, with some centers exploring innovative solutions like underwater or Arctic locations. Edge computing is also emerging to bring AI processing closer to data sources. The new data centers, empowered by AI algorithms, will process massive volumes of data in real time, reducing latency and improving user experience, Baran Erdogan, a tech advisor at OSM, told PYMNTS. "This would mean quicker checkouts, more accurate inventory management and the personalization of customer interactions," he said. "By applying AI, data centers can also optimize resource allocation so that computing power can be utilized more effectively to lower operation costs and improve transaction speed." The collaboration by companies such as Microsoft and BlackRock to develop AI-driven data centers might be a source of innovation in services that transform retail and consumer behavior, Erdogan said. "We may see more sophisticated recommendation engines using deep learning to predict the preferences of consumers with high accuracy," he added. "AI can also enable augmented reality shopping experiences, where customers virtually try out clothes or see how furniture would look in their homes. These features can make online shopping more engaging and interactive, thereby probably affecting purchase decisions and leading to increased sales." AI's role in data center design is expanding beyond its past applications, leading to the development of more complex supply chain management systems, Cache Merrill, the founder of the tech firm Zibtek, told PYMNTS. "Such systems can use AI to forecast market behavior, manage stock levels without intervention and plan the best delivery routes based on consumer activity," he said."This reduces delivery time, lowers costs and adds resiliency to the supply chain, which can react rapidly to changes."