By Zainab Shafiq 
BlackRock and Microsoft, on Tuesday, announced a proposal to raise a fund of more than $30 billion to finance artificial intelligence infrastructure. Through the establishment of some dedicated data centers and the energy projects that will provide and power said data centers, BlackRock and Microsoft are seeking to support AI-related technologies, especially deep learning and massive computing.
AI models require massive amounts of computational resources, forcing the large tech companies to build potent data clusters housing thousands of high-performance chips. Such computations have incurred an ever-growing demand for better data centers in order to house such heavy workloads; and it is precisely that kind of need that BlackRock and Microsoft’s AI fund aims to fill.
BlackRock and Microsoft aim to strengthen AI supply chains
Named the Global AI Infrastructure Investment Partnership, this is aimed at strengthening AI supply chains and accessing important sources of energy to feed these data centers. Abu Dhabi-backed MGX will be a general partner in this fund. One of the most prominent producers of AI chips, Nvidia (NVDA.O), will bring chip technology know-how to this partnership.
BlackRock and Microsoft also announced the fund, stating it will leverage as much as $100 billion in debt financing. Much of the investment will target projects in the United States, with the remaining investment placed on projects within the partner countries.
The partnership takes place at a time of rapidly swelling demands for AI capabilities, straining energy consumption and computing resources. With such a vast expansion in the reach of influence of AI, BlackRock and Microsoft’s AI fund aims to shape a basis for the future of AI infrastructure.
According to Financial Times, who first reported the news, it is going to redefine AI supply chains and data center infrastructure.
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