Microsoft has partnered with investment giant BlackRock to launch the Global AI Infrastructure Investment Partnership (GAIIP), a fund exceeding $30 billion aimed at developing critical infrastructure for artificial intelligence advancements.
The collaboration includes Global Infrastructure Partners (GIP) and MGX, and is focused on building data centers and energy projects necessary to power next-generation AI technologies.
The investments will primarily target the United States, supporting the expansion of computing power and energy resources, with additional investments planned in partner countries. The partnership maintains an open architecture, granting non-exclusive access to a diverse range of companies and organizations. AI darling Nvidia will also play a role in the initiative, assisting in enhancing AI data centers.
$100 billion target
The goal of GAIIP is to unlock $30 billion in private equity capital initially, potentially reaching $100 billion when combined with debt financing. Larry Fink, Chairman and CEO of BlackRock, said, "Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion-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.”
GAIIP's formation comes at a time when the demand for AI infrastructure is rapidly increasing. By pooling resources from leading global investors and technology companies, the partnership aims to accelerate the development of essential infrastructure for an AI-driven future.
Brad Smith, Vice Chair and President of Microsoft, noted that the capital required for AI infrastructure and new energy sources is more than any single company or government can finance. "This financial partnership will not only help advance technology, but enhance national competitiveness, security, and economic prosperity," he said.
"Accelerated computing and generative AI are driving a growing need for AI infrastructure for the next industrial revolution," said Jensen Huang, founder and CEO of Nvidia. "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."
Satya Nadella, Microsoft's Chairman and CEO, summed up the alliance, saying, "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."
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