Microsoft Starts $30 Billion AI Fund

Microsoft and investment company BlackRock will launch a fund worth more than $30 billion. It would aim at developing vital infrastructure including data centers and energy projects required to power AI capabilities.

Microsoft stated it would work with BlackRock and its subsidiary Global Infrastructure Partners, as well as Abu Dhabi-based MGX, to launch the fund, while Nvidia is also on board to offer expertise on developing AI data centers and factories that benefit the wider ecosystem. MGX was created earlier this year, backed by Abu Dhabi’s sovereign wealth fund Mubadala, to advance Middle Eastern interests in AI.

The fund dubbed the Global AI Infrastructure Investment Partnership (GAIIP), will predominately invest in the US to fuel the country’s AI innovation and growth, while a small portion will be put into partner countries. GAIIP will actively engage with industry leaders to enhance AI supply chains and energy sourcing. The partnership will initially seek to raise $30 billion in equity investment, which could increase to $100 billion when taking into account debt financing.

Brad Smith, vice chair and president at Microsoft, explained the capital spending needed for AI infrastructure and the new energy to power it goes beyond what 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.