info@ceoworld.biz
Thursday, October 10, 2024
CEOWORLD magazine - Latest - Tech and Innovation - Microsoft and BlackRock Among Major Companies on Global Partnership to Invest an Initial $30 Billion in AI Infrastructure with Plans to $100 Billion

Banking and FinanceTech and Innovation

Microsoft and BlackRock Among Major Companies on Global Partnership to Invest an Initial $30 Billion in AI Infrastructure with Plans to $100 Billion

Microsoft

A consortium of major companies, including Microsoft and BlackRock, has announced plans to raise up to $100 billion to fund the development of data centers designed for artificial intelligence (AI) and the energy systems needed to support them.

This initiative, known as the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), was revealed in a recent press release. The group also includes Global Infrastructure Partners (GIP), an infrastructure investment firm currently being acquired by BlackRock, as well as MGX, a technology investment company based in the United Arab Emirates.

In a statement, Microsoft CEO Satya Nadella emphasized the company’s commitment to advancing AI-driven innovation across industries. He highlighted the collaboration between financial and industry leaders to build the next generation of infrastructure, with a focus on sustainability.

The partnership aims to raise an initial $30 billion, with plans to eventually scale the fund to $100 billion, including through debt financing.

The rapid expansion of data centers equipped with Nvidia GPUs, essential for running generative AI models like OpenAI’s ChatGPT, has fueled this effort. These powerful processors require substantial energy, creating supply chain constraints as tech companies race to build the necessary infrastructure.

Microsoft’s contribution to the project is in addition to its ongoing capital investments, particularly for expanding its Azure cloud platform, which serves AI clients like OpenAI. In July, Microsoft disclosed that it had spent $19 billion in the fiscal fourth quarter on capital expenditures, including assets acquired through finance leases.

Meanwhile, BlackRock’s acquisition of GIP is moving forward, with the deal expected to close on October 1. The transaction, valued at $3 billion in cash and approximately 12 million shares of BlackRock common stock, was first announced in January.

MGX, another key player in the partnership, was founded in March through a collaboration between Abu Dhabi’s Mubadala and AI company G42, underscoring the global nature of the investment strategy.

 

Have you read?
Countries Most in Debt to the International Monetary Fund (IMF).
Most Successful Unicorn Startups.
$100 Billion Club: Richest People With The 12-Figure Fortunes.
Largest electricity consumers in the world, by country (in terawatt-hours).
Countries that Export the Most Goods and Services.


Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact: info@ceoworld.biz
CEOWORLD magazine - Latest - Tech and Innovation - Microsoft and BlackRock Among Major Companies on Global Partnership to Invest an Initial $30 Billion in AI Infrastructure with Plans to $100 Billion
Anna Siampani
Anna Siampani, Lifestyle Editorial Director at the CEOWORLD magazine, working with reporters covering the luxury travel, high-end fashion, hospitality, and lifestyle industries. As lifestyle editorial director, Anna oversees CEOWORLD magazine's daily digital editorial operations, editing and writing features, essays, news, and other content, in addition to editing the magazine's cover stories, astrology pages, and more. You can reach Anna by mail at anna@ceoworld.biz