Microsoft and BlackRock, alongside investment firms Global Infrastructure Partners and MGX, have announced a partnership to establish a $30 billion fund aimed at artificial intelligence (AI) infrastructure projects. The initiative, named the Global AI Infrastructure Investment Partnership (GAIIP), aims to attract initial funding from investors, asset owners, and corporations, with the potential to reach a total investment of $100 billion when incorporating debt financing.
The funds will primarily support the development of data centers and energy infrastructure in the U.S. to meet the increasing demand for computing power. Microsoft CEO Satya Nadella emphasized the partnership’s commitment to ensuring that AI drives innovation and growth across various sectors of the economy.
As Microsoft faces pressure to demonstrate the return on its AI investments, the company’s stock recently rose for the seventh consecutive session, bolstered by a $60 billion stock buyback program announced earlier.
The fund will predominantly focus on projects within the U.S., promoting AI innovation and economic growth, with a portion allocated for investments in U.S. partner countries. BlackRock CEO Larry Fink highlighted the significance of attracting private capital to build AI infrastructure, stating it could unlock “a multi-trillion-dollar long-term investment opportunity.”
While BlackRock shares experienced a 1.4% increase midday Wednesday, Microsoft’s stock saw a slight decline of 0.65%.
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