Microsoft and BlackRock have announced a collaboration with Elon Musk's xAI to advance a $30 billion initiative focused on building data centers and other AI infrastructure. NVIDIA, a leading AI chip manufacturer, has also officially joined the project, having already served as a technical advisor since the plan's inception. The details of each member's commitments remain unspecified.
Microsoft, a major supporter of Sam Altman's OpenAI with investments totaling around $13 billion, is increasingly developing its own AI models outside this partnership. Reports suggest that Microsoft has created internal AI models that could rival OpenAI. Meanwhile, Musk, a co-founder of OpenAI, has been publicly at odds with Altman over the company's shift towards a profit-driven structure.
The capital demands and enthusiasm for AI have prompted various companies and investors to form alliances aimed at building some of the world's largest data center campuses. Former U.S. President Donald Trump highlighted commitments worth hundreds of billions from companies like SoftBank Group and OpenAI, supporting a $100 billion AI investment initiative named Stargate.
With the inclusion of xAI and NVIDIA, the Microsoft-backed consortium will be rebranded 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. The initiative is expected to attract more investors, as BlackRock CEO Larry Fink noted the interest of clients, including pension and insurance companies, in such long-term infrastructure projects.
Last year, BlackRock and Microsoft, along with MGX (an investment vehicle from the UAE involved in Stargate) and Bayo Ogunlesi's Global Infrastructure Partners, unveiled this alliance. They aimed to raise $30 billion in private equity capital over an unspecified timeline, potentially driving up to $100 billion in investments.
The consortium announced that energy suppliers NextEra Energy Inc. and GE Vernova Inc. have agreed to collaborate with AIP to accelerate diverse energy solutions for AI data centers. This partnership was established in January to capitalize on the surge in AI data center spending.
The surge in AI investments has significantly impacted global power demand. By 2034, data center energy consumption is expected to exceed 1,580 terawatt-hours, equivalent to India's current electricity usage.
