Microsoft and Blackrock to raise $30 billion for AI infrastructure

Microsoft said that the AI fund will have up to $100 billion in total investment potential

Microsoft and American investment company BlackRock announced the Global AI Infrastructure Investment Partnership (GAIIP) this week, promising to raise significant investments for AI infrastructure, including new and expanded data centers and for the discovery of new energy sources to supply power to these facilities. The initial goal for the fund is set at $30 billion, said the companies, and will mainly be applied in the U.S. to “enhance American competitiveness.”

Microsoft’s Vice Chair and President of MicrosoftBrad Smith commented: “The capital spending needed for AI infrastructure and the new energy to power it goes beyond what any single company or government can finance. This financial partnership will not only help advance technology, but enhance national competitiveness, security, and economic prosperity.”

Once the initial $30 billion is “unlocked,” Microsoft said in a press release, up to $100 billion in total investment potential will be “mobilized” 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.”

According to Microsoft CEO Satya Nadella, the company is “committed to ensuring AI … drives growth across every sector of the economy. Nadella added that this partnership will help deliver the “vision” of building the “infrastructure of the future … in a sustainable way.”

Global Infrastructure Partners (GIP) and artificial intelligence and advanced technology investor MGX are also partners and investors in the new fund.