BlackRock and Microsoft have announced that they are planning to launch a $30 billion fund to invest in artificial intelligence (AI) infrastructure. Indeed, the $9 trillion asset manager is teaming up with the leading tech giant to build data centers and energy projects to meet growing demands stemming from AI.
BlackRock is launching the fund its new infrastructure investment unit, Global Infrastructure Partners, sources familiar with the fund say. Microsoft and MGX, the Abu Dhabi-backed investment company, are general partners in the fund. The fund would be one of the biggest investment vehicles ever raised on Wall Street, sources say.
“The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed. This kind of effort is an important step,” Brad Smith, Microsoft’s president, said Tuesday. The fund addresses the growing demand for building AI products, which requires more energy than past technological advances.
BlackRock and Microsoft Hone Focus on AI Infrastructure with new Fund
POLAND – 2021/02/19: In this photo illustration a Microsoft logo seen displayed on a smartphone with stock market values in the background. (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)
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BlackRock recently highlighted the energy sector as one of its top opportunities for growth. Chief executive Larry Fink wrote to investors earlier this year, that “in my nearly 50 years in finance, I’ve never seen more demand for energy infrastructure.”
BlackRock’s AI project isn’t the first that Microsoft has dedicated time and significant funding to in the AI field. Earlier this year, the tech giant agreed to back $10 billion in renewable electricity projects built by Brookfield Asset Management. Microsoft has committed to ensuring that 100 percent of its energy consumption is matched by zero-carbon energy purchases by 2030. “The country and the world are going to need more capital investment to accelerate the development of the AI infrastructure needed. This kind of effort is an important step,” said Brad Smith, Microsoft’s president.
