Microsoft and BlackRock invest 30 billion in AI

BlackRock, the world’s largest asset manager, has pointed to the energy sector as one of its best growth opportunities. In this regard, they are ready to take a new step towards integrating artificial intelligence into our lives. Together with tech giant Microsoft, they are launching a fund to build an AI structure that will finance projects to build data centers, energy projects, campaigns, and technology developments to meet the growing demands arising from the development of artificial intelligence. The partnership between BlackRock, which will operate through its new infrastructure investment unit Global Infrastructure Partners, and Microsoft will be one of the largest partnerships in Wall Street’s history and will be valued at $30bn.

MGX, the Abu Dhabi-backed AI investing platform, will also be a general sponsor in the project to meet the country’s needs for innovation and development in the AI sphere. Nvidia, on the other hand, will advise on the design and integration of the ventures.

AI computing power requires much more energy than previous technological innovations and thus puts a strain on the existing energy infrastructure, to this end the investment vehicle is aimed at addressing the huge electrical and digital infrastructure needs associated with building AI products, which are expected to face severe capacity constraints in the future.

The Global AI Investment Partnership aims to raise up to USD 30 billion through equity investments. These funds will be used to secure an additional USD 70 billion in debt financing.