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

CIOTechOutlook Team | Thursday, 19 September 2024, 02:43 IST

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BlackRock and Microsoft are collaborating on a project to create a fund of over $30 billion that will focus on investing in artificial intelligence infrastructure for data centers and energy initiatives.

AI models, particularly those utilized in deep learning and extensive data processing, demand significant computational resources, resulting in increased energy consumption.

The need for AI has caused tech companies to connect thousands of chips in clusters to meet data processing demands, resulting in a higher need for specialized data centers.

BlackRock and Microsoft announced the creation of the Global AI Infrastructure Investment Partnership with the goal of improving AI supply chains and energy sourcing. The investment company MGX, backed by Abu Dhabi, will act as a general partner in the fund, with Nvidia, a firm specializing in AI chips, offering their expertise.

The collaboration is expected to generate a total investment potential of $100 billion, taking into account debt financing, as stated by the companies. According to the companies, most of the investments will be made in the United States with the rest going to its partner countries.

The headquarters of Microsoft Corporation is located in Redmond, Washington, and it is an American multinational corporation and technology company. The most famous software offerings from the company include the Windows operating systems, Microsoft 365 productivity suite, Azure cloud computing platform, and Edge web browser.

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