Microsoft and BlackRock have announced an ambitious investment plan to raise $100 billion to develop infrastructure supporting artificial intelligence (AI). As part of the partnership, a group called the Global Artificial Intelligence Infrastructure Investment Partnership will allocate $30 billion to build new data centers and upgrade existing facilities. The remainder of the funds are to be channeled into the development of energy infrastructure, crucial to AI operations.
The partnership combines the efforts of two giants – technology leader Microsoft and financial giant BlackRock, which is the world’s largest asset manager. BlackRock, often described as the globe’s most powerful financial entity, is bringing its vast resources and influence into the project, making the investment extremely strategic.
The group of investors will also include Global Infrastructure Partners, which BlackRock will acquire for $3 billion, and technology investor MGX of the United Arab Emirates. Part of the project is to be financed through debt, with additional funds to be raised at a later date.
The investments by Microsoft and BlackRock represent a strategic move in the global tech leadership race for dominance in the artificial intelligence market. Just like Amazon and Google, Microsoft is intensively developing its data centers, key to the operation of modern AI tools, which require advanced hardware, including GPUs. The largest supplier of these solutions is Nvidia, which controls 90% of the data center GPU market.
Artificial intelligence is definitely driving the future of technology. The drive to develop more powerful AI, including the development of large language models such as ChatGPT, requires huge financial resources and advanced infrastructure. Microsoft has been steadily increasing its investment in this area – in the last fiscal quarter alone, the company’s capital expenditure (CAPEX) reached $19 billion.
Source: CNBC
