BlackRock and Microsoft have teamed up to launch a massive $30 billion fund aimed at developing artificial intelligence (AI) infrastructure. The collaboration between the $9 trillion asset manager and the tech giant marks a significant push to build data centers and energy projects necessary to meet the growing demands of AI technologies.
A Major Step for AI Development
BlackRock is rolling out the fund through its new infrastructure investment unit, Global Infrastructure Partners. Microsoft and MGX, an investment firm backed by Abu Dhabi, are serving as general partners in the fund. According to sources familiar with the initiative, the fund would be one of the largest investment vehicles ever raised on Wall Street, reflecting the global demand for AI infrastructure development.
Brad Smith, Microsoft’s president, emphasized the importance of this investment, saying, “The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed. This kind of effort is an important step.” As AI technologies evolve, they require far more energy and computational resources than previous innovations, making infrastructure development essential.
BlackRock’s Focus on Energy Infrastructure
BlackRock has identified the energy sector as a critical area for growth. In a letter to investors earlier this year, BlackRock CEO Larry Fink noted the rising demand for energy infrastructure, stating, “In my nearly 50 years in finance, I’ve never seen more demand for energy infrastructure.” This latest AI-focused fund aligns with BlackRock’s broader strategy of investing in energy, particularly as AI’s energy needs grow rapidly.
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Microsoft’s Commitment to AI and Energy Efficiency
Microsoft has been a key player in AI development and infrastructure investments. The company recently pledged $10 billion to support renewable energy projects through Brookfield Asset Management. As part of its broader sustainability goals, Microsoft aims to match 100% of its energy consumption with zero-carbon energy by 2030, signaling a strong commitment to both AI and environmental sustainability.
This new AI infrastructure fund further cements Microsoft’s role in driving forward AI advancements while meeting the energy challenges they pose. The partnership between BlackRock, Microsoft, and MGX highlights the growing importance of investing in infrastructure capable of supporting AI’s expansive and energy-intensive future.
