(Reuters) – BlackRock and Microsoft plan to launch a fund worth more than $30 billion to invest in artificial intelligence infrastructure to build data centers and energy projects, the companies said on Tuesday.
AI models, especially those used for deep learning and large-scale data processing, require significant computing power, which results in higher energy consumption.
The computing demands of AI have forced tech companies to cluster thousands of chips together to get the necessary amount of data processing power, driving up demand for these specialized data centers.
The investment vehicle, known as the Global AI Infrastructure Investment Partnership, aims to help improve AI supply chains and energy supply, BlackRock and Microsoft said.
MGX, the Abu Dhabi-backed investment firm, will be a general partner in the fund, while AI chip company Nvidia will provide expertise.
The partnership will mobilize up to $100 billion in total investment potential, including debt financing, the companies said.
The investments will be made mainly in the United States and the rest in partner countries, according to the companies.
The Financial Times was the first to report this news.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta)