BlackRock, Microsoft & MGX plan to launch $30 billion AI fund

BlackRock is set to launch a $30 billion artificial intelligence investment fund in collaboration with Microsoft, aimed at addressing the growing demands for AI-related infrastructure. According to the company's press release, the fund is to be managed by the company's new infrastructure investment unit, Global Infrastructure Partners (GIP).

The partnership will initially seek to unlock $30 billion of private equity capital over time from investors, asset owners, and corporates, which in turn will mobilise up to $100 billion in total investment potential when including debt financing.

“Mobilizing private capital to build AI infrastructure like data centers and power will unlock a multi-trillion dollar long-term investment opportunity,” said Larry Fink, Chairman and CEO of BlackRock. “Data centers are the bedrock of the digital economy, and these investments will help power economic growth, create jobs, and drive AI technology innovation.”

Microsoft and MGX, an Abu Dhabi-backed investment company, will serve as general partners in the fund, with Nvidia providing expertise on AI technologies. The investment vehicle is designed to tackle the power and digital infrastructure needs arising from the rapid development of AI products, which are anticipated to face severe capacity constraints in the near future.

“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy,” said Satya Nadella, Chairman and CEO, Microsoft. “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.”

“Accelerated computing and generative AI are driving a growing need for AI infrastructure for the next industrial revolution,” said Jensen Huang, founder and CEO of NVIDIA . “NVIDIA will use its expertise as a full stack computing platform to support GAIIP and its portfolio companies on the design and integration of AI factories to propel industry innovation.”

The fund will be GIP’s first major initiative following its acquisition by BlackRock for $12.5 billion, a deal expected to close in October. BlackRock, the asset manager, has identified the energy sector as a key growth area, with CEO Larry Fink noting demand for energy infrastructure.

“Building the necessary infrastructure required to advance and accelerate the adoption of AI will reshape and revitalise almost every aspect of how we live,” said Ahmed Yahia Al Idrissi, CEO of MGX. “Similar to our transportation infrastructure, new data centers and power sources will enable growth and commerce in the future innovation economy.”

The new fund aligns with a broader trend among major asset managers to address the escalating energy needs for AI and cloud computing. Earlier this year, Microsoft committed $10 billion to renewable energy projects through Brookfield Asset Management. Microsoft has pledged to match 100% of its energy consumption with zero-carbon energy by 2030.