Close Menu
AlexaBlockchain
  • News
  • Press Releases
    • Submit Press Release
  • Adoption
  • Funding
  • Interview
  • Policy
  • Explained
    • Bitcoin Halving 2024: Will it Trigger the Next Bull Run?
    • Everything You Wanted to Know About Bitcoin But Were Too Afraid To Ask
    • Cryptocurrency: what makes it so popular?
    • Top Five Crypto Scams And How To Avoid Them
    • Cloud Mining Explained
    • What are NFTs?
    • What is a Web3 Browser?
    • How To Build High Quality Crypto Backlinks
  • About
  • Advertise
  • Trending
    • #BitcoinHalving
    • #CloudMining
    • #Web3.0
    • #Metaverse
    • #NFTs
    • #PlayToEarn
    • #DeFi
    • #BlockchainTechnology
    • #Bitcoin
    • #Cryptocurrency
    • #DigitalAssets
Facebook X (Twitter) Instagram
Friday, May 30
  • Advertise
  • Crypto PR
  • Partner
  • Submit Press Release
  • Contact Us
X (Twitter) Facebook LinkedIn Instagram
AlexaBlockchain
Banner
  • News
  • Press Releases
    • Submit Press Release
  • Adoption
  • Funding
  • Interview
  • Policy
  • Explained
    • Bitcoin Halving 2024: Will it Trigger the Next Bull Run?
    • Everything You Wanted to Know About Bitcoin But Were Too Afraid To Ask
    • Cryptocurrency: what makes it so popular?
    • Top Five Crypto Scams And How To Avoid Them
    • Cloud Mining Explained
    • What are NFTs?
    • What is a Web3 Browser?
    • How To Build High Quality Crypto Backlinks
  • About
  • Advertise
  • Trending
    • #BitcoinHalving
    • #CloudMining
    • #Web3.0
    • #Metaverse
    • #NFTs
    • #PlayToEarn
    • #DeFi
    • #BlockchainTechnology
    • #Bitcoin
    • #Cryptocurrency
    • #DigitalAssets
AlexaBlockchain
You are at:Home » BlackRock and Microsoft to Launch $30B AI Infrastructure Fund
Investment & Funding

BlackRock and Microsoft to Launch $30B AI Infrastructure Fund

This initiative includes the development of data centers and energy projects, which are crucial for handling the increasing computational demands of AI technologies.
Ravi KumarBy Ravi KumarSeptember 17, 2024Updated:September 18, 2024No Comments5 Mins Read
Twitter Facebook LinkedIn Reddit Email WhatsApp
BlackRock and Microsoft to Launch $30B AI Infrastructure Fund
BlackRock and Microsoft to Launch $30B AI Infrastructure Fund
Share
Twitter Facebook LinkedIn Pinterest Reddit Telegram Email WhatsApp

Key Takeaways

  • BlackRock and Microsoft are launching a $100 billion fund ($30 billion in equity and $70 billion in debt financing) to address the growing infrastructure demands of AI, including data centers and renewable energy projects.
  • The increasing computational power required by AI models is creating significant strain on energy resources. The fund seeks to alleviate these bottlenecks by investing heavily in energy infrastructure, supporting AI’s long-term growth.
  • Nvidia is advising on the design and integration of AI facilities, while Microsoft and Abu Dhabi-based MGX act as general partners.

BlackRock, in collaboration with Microsoft, is planning to launch an investment fund totaling more than $100 billion ($30 billion in equity and $70 billion in debt) aimed at supporting the infrastructure for artificial intelligence (AI), Financial Times reports citing people familiar with the matter.

This initiative includes the development of data centers and energy projects, which are crucial for handling the increasing computational demands of AI technologies.

This fund marks one of the largest AI-focused investments ever on Wall Street, spotlighting the significant financial interest in AI and its foundational requirements.

“AI investment can not only build wealth, but contribute to a more efficient future,” Tony Kim, Portfolio Manager from BlackRock’s Fundamental Equities team, said in a recent interview.

Artificial Intelligence is experiencing a transformative moment. Tony Kim, Portfolio Manager from BlackRock’s Fundamental Equities team, joined the latest episode of The Bid #podcast to explore the evolving conversation around #AI among notable experts in the field and share how… pic.twitter.com/3BqPgz5gZG

— BlackRock (@BlackRock) September 13, 2024

The fund not only involves direct investment from BlackRock and Microsoft but also includes partnerships with entities like Nvidia and an Abu Dhabi-backed firm, MGX.

The newly established fund will be managed by BlackRock’s infrastructure arm, Global Infrastructure Partners (GIP). Microsoft and Abu Dhabi-based investment firm MGX will join as general partners of the fund.

Global AI Infrastructure Investment Partnership (GAIIP)

This collaboration, officially dubbed the Global AI Infrastructure Investment Partnership (GAIIP), represents a comprehensive strategy to address the immense strain AI places on existing energy and computing capacities—data centers, power grids, and renewable energy projects are among the primary focuses.

“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,” Microsoft Chairman and CEO, Satya Nadella, said.

Nvidia, the leader in AI chip production, is on board as a key advisor, guiding the design and technological integration of AI-driven facilities.

Addressing the AI Infrastructure Bottleneck

As AI models grow more advanced, their energy and computational requirements have escalated dramatically, raising concerns about capacity bottlenecks in both computing power and electricity supply. AI-driven data centers are far more resource-intensive than their predecessors, consuming significantly more power to meet the demands of cutting-edge models.

The broader goal of this fund extends beyond immediate infrastructure needs, aiming to raise up to $100 billion ($70 billion in debt financing on top of its equity raise), showcasing a significant commitment to enhancing AI’s foundational infrastructure globally.

Larry Fink, BlackRock’s CEO, positioned this initiative as central to the firm’s broader strategy in energy and technology. “Mobilising private capital to build AI infrastructure like data centers and power will unlock a multitrillion-dollar long-term investment opportunity,” Fink said, pointing to the expansive growth potential of AI as an asset class in itself.

By tackling these infrastructure challenges head-on, the partnership aims to remove the bottlenecks that have hindered AI’s development at scale.

Microsoft’s AI Ambitions

Microsoft, which has become a dominant force in AI through partnerships with OpenAI and its Azure cloud services, is extending its efforts to support AI’s foundational infrastructure.

Having previously committed $10 billion to renewable energy projects through a partnership with Brookfield Asset Management, Microsoft is positioning itself as a leader not just in AI development but in the green energy transition.

Brad Smith, Microsoft’s president, emphasized the necessity of large-scale investments to keep pace with AI’s infrastructural needs. “The world is going to need more capital investment to accelerate the development of AI infrastructure,” Smith said, reinforcing the strategic importance of the fund’s capital to the AI ecosystem.

A Global Play on Energy and Digital Infrastructure

The partnership is expected to make significant investments within the U.S. while also considering opportunities abroad. The focus on data centers and renewable energy aligns with growing global demand for sustainable energy solutions, and the need to meet AI’s voracious energy consumption aligns with the broader push for decarbonization.

The potential for job creation is also significant, with new AI-related infrastructure likely to drive employment growth in both technology and construction sectors. As AI reshapes industries, from finance to healthcare, the infrastructure enabling it will be crucial to its widespread adoption.

BlackRock’s recent $12.5 billion acquisition of Global Infrastructure Partners underscores the asset manager’s deep commitment to infrastructure investment. The acquisition, set to be finalized in October, positions BlackRock as a leading global platform for private markets investment, with strategic focuses on energy security, digital infrastructure, and supply chain resilience.

As AI continues to capture imaginations and investment dollars, the scale of this partnership reflects the growing understanding that AI’s future hinges not just on software and algorithms, but on the physical infrastructure that supports its evolution.

The Bottom Line
The BlackRock-Microsoft AI infrastructure fund represents one of Wall Street’s most ambitious bets yet on the future of artificial intelligence. By addressing the physical limitations imposed by AI’s growth—particularly in energy and computing—this partnership sets the stage for a massive long-term investment opportunity. As AI’s role in the global economy expands, the infrastructure that powers it will be critical to realizing its full potential.

Read Also: Aptos Labs and Microsoft Unite to Accelerate Web3 Adoption with AI

Artificial Intelligence (AI) BlackRock Microsoft
Share. Twitter Facebook LinkedIn Reddit Pinterest Tumblr Telegram Email WhatsApp
Ravi Kumar
  • X (Twitter)
  • LinkedIn

Ravi is Founder and Chief Content Officer of AlexaBlockchain. He writes about everything at the cross-section of blockchain, crypto, AI, markets, and the economy. Ravi can be reached at ravi@alexablockchain.com

More AlexaBlockchain

VOYA Games Raises $5M Co-led by 1kx, Makers Fund

May 21, 2025

Animoca Brands Invests in Astar to Boost Sony’s Web3 Entertainment Push

May 21, 2025

Antix Raises $8.2M to Launch Tokenized Digital Humans

May 14, 2025

SOL Strategies Inks $500M Deal with ATW Partners

April 23, 2025

RedotPay Raises $40M in Series A Funding Led by Lightspeed

March 17, 2025

YZi Labs Invests in Tensorplex Labs to Supercharge the Development of Decentralized AI

March 6, 2025
Add A Comment

Comments are closed.

Don't Miss

QFSCOIN Launches Affordable Cloud Mining Contracts to Democratize Bitcoin Access

Liquidium Launches Cross-Chain Bitcoin Lending Without Wrapped Tokens or Bridges

Katana Launches High-Yield DeFi Blockchain Backed by GSR and Polygon Labs

Sony’s Soneium Brings Viral Telegram Game Sleepagotchi to 200M Users via LINE

Trending Topics
  • Blockchain News
  • Blockchain Technology
  • Blockchain Platforms
  • Blockchain Regulation
  • Bitcoin News
  • Ethereum News
  • Ripple News
  • Tezos News
  • CBDC
  • NFTs
Featured Companies
  • Binance
  • Tech Mahindra
  • Huobi
  • Efforce
  • Future FinTech Group
  • SuburbanColors
  • Launchpool Labs
  • Lucky Crab Club
  • SIMBA Chain
  • Bulldog Law
Stay Updated
  • Events
  • Newsletters
  • Follow
  • Follow on Google News
  • Blockchain Directory
Get In Touch
  • Crypto PR
  • Advertise
  • Partner
  • About
  • Masthead
  • Careers
  • Write for Us
  • Submit Press Release
  • Submit Guest Post
  • Contact US
Copyright © 2025. AlexaBlockchain
  • About
  • Advertise
  • Crypto PR
  • Submit Press Release
  • Write for Us
  • Careers
  • Privacy Policy
  • Affiliate Disclosure
  • Disclaimer
  • Contact

Type above and press Enter to search. Press Esc to cancel.