The "Next AI Trade" Plays Out: Microsoft And BlackRock Join Forces On $30 Billion AI Infrastructure Fund
As we have been writing for the better part of the last year, the next AI trade continues to look like it's going to be energy. And now, both BlackRock and Microsoft are making it known that they understand this, too.
Yesterday it was reported that the two industry giants are prepping the launch of a $30 billion AI investment fund that'll see Microsoft build data centers and energy projects to meet the demands of AI, according to the Financial Times.
BlackRock’s new infrastructure investment unit, Global Infrastructure Partners, is launching a major investment fund with Microsoft and Abu Dhabi’s MGX as general partners. Nvidia will provide advisory on factory design and integration.
The FT wrote that the partnership aims to tackle the massive power and infrastructure needs of AI development, which is expected to strain current energy systems. AI’s computing demands far exceed past technologies.
The partnership seeks to raise up to $30bn in equity, with plans to leverage an additional $70bn in debt.
In a statement, Larry Fink said: “Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multitrillion-dollar long-term investment opportunity.”
Brad Smith, Microsoft’s president, added: “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.”
https://www.zerohedge.com/markets/next-ai-trade-plays-out-microsoft-and-blackrock-join-forces-30-billion-ai-infrastructure