Microsoft and BlackRock have announced a collaboration with Elon Musk's xAI as part of their "Global AI Infrastructure Investment" initiative. This alliance aims to develop $30 billion worth of data centers and AI infrastructure. NVIDIA, already designated as a technical advisor, will officially join this partnership.
Microsoft has previously invested approximately $13 billion in OpenAI. However, it is simultaneously developing its own AI models, which it believes can rival OpenAI. This move is significant given Musk's history with OpenAI; he was one of its co-founders but has since become a public adversary of OpenAI's CEO, Sam Altman, due to disputes over the company's shift to a for-profit structure.
With the inclusion of xAI and NVIDIA, the collaboration will rebrand as the AI Infrastructure Partnership (AIP), focusing on infrastructure investments, including energy projects primarily in the U.S., with some funds allocated to partner countries. This initiative was originally launched by BlackRock, its Global Infrastructure Partners (GIP), Microsoft, and UAE investment firm MGX last year, aiming to raise $30 billion in private equity capital and potentially leverage up to $100 billion in investments.
The alliance is expected to attract more investors. BlackRock CEO Larry Fink noted that clients, including pension funds and insurance companies, are eager for such long-term infrastructure projects. Energy suppliers NextEra Energy Inc. and GE Vernova Inc. have agreed to collaborate with AIP to expand diverse energy solutions for AI data centers. Earlier this year, these companies announced a partnership to capitalize on the surge in AI data center spending.
The demand for AI investments is significantly impacting global energy needs. It's projected that by 2034, data center energy consumption will exceed 1,580 terawatt-hours, comparable to India's current national electricity consumption.
