Microsoft and BlackRock are joining forces to launch a $30 billion fund (£22.8 bn) aimed at developing artificial intelligence (AI) infrastructure. The Global AI Infrastructure Investment Partnership is designed to fund the creation of data centres and energy projects that can support the growing needs of AI models.
These projects are set to be driven by advanced computing capabilities that are necessary for AI models, especially those that require deep learning and large-scale data processing, which can be very energy-intensive. As AI technology continues to evolve each day, the need for computing power has surged, resulting in the demand for data centres with thousands of interconnected chips.
This collaboration between BlackRock and Microsoft, as well as partners like MGX (an investment company) and Nvidia (an AI chip firm), aims to tackle the challenge AI models pose by improving AI supply chains and securing additional energy resources. Nvidia is set to play a critical role in offering technical guidance around AI chips.
The overall investment potential could reach $100 billion (£76 bn) when debt financing is included, according to the partnership companies.
The past few years have seen AI expand beyond the tech industry. AI has influenced several sectors, like finance, healthcare, and even online gambling. The use of AI in online gambling, for example, is prevalent as algorithms are used by casinos to improve user experiences and customer service. Many tested online options for the best gambling sites integrate AI tools that ensure fairness in gameplay, speed up player verification and improve platform security.
The retail and manufacturing industry is also using AI to optimise operations, improve customer satisfaction, and manage inventories. The healthcare sector uses AI to help with diagnostics and scheduling, provide tailored health tips to patients and organise patient information. And in the finance sector, AI can help with forecasting and data analytics.
The Microsoft-BlackRock initiative will focus its investments in the US but is set to expand to partner countries in the future. With the rapid uptake and expansion of AI and machine learning across various industries, there is a continuous demand for more powerful data processing capabilities. These capabilities require massive computational power and also contribute to tech companies’ demand for more energy.
Through the partnership, Microsoft and BlackRock hope to address these challenges and shape the future of AI technology infrastructure.
The Global AI Infrastructure Investment Partnership welcomes a new era of innovation, as major players in the finance and tech industries join forces so that more powerful AI applications can be supported. It is likely that the fund will lead to AI advancements across industries, including entertainment, healthcare, finance and retail.