Microsoft and BlackRock Partner to Raise $100 Billion for AI Infrastructure

Microsoft and BlackRock, along with Global Infrastructure Partners (GIP) and MGX, have formed the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP). Their goal: raise up to $100 billion to build AI data centers and the energy infrastructure needed to power them.

The initiative aims to gather $30 billion initially, with plans to reach $100 billion through debt financing. This move comes as tech giants scramble to construct data centers equipped with Nvidia GPUs, crucial for running AI models like OpenAI's ChatGPT. These GPUs demand significant power, creating a bottleneck for new facilities.

Microsoft's Azure cloud service, which supports OpenAI and other AI clients, requires substantial capital expenditure. In the last quarter, Microsoft's capital spending, including finance leases, totaled $19 billion.

BlackRock's acquisition of GIP, expected to close in October, involves $3 billion in cash and 12 million shares of BlackRock stock. MGX, launched by Abu Dhabi's Mubadala and AI firm G42, is also part of the partnership.

This collaboration underscores the urgent need for robust infrastructure to sustain the explosive growth of AI technologies. The financial commitment reflects a strategic push to ensure AI's widespread integration across various sectors, driving innovation and economic growth.