Microsoft Corp. and BlackRock Inc. announced Wednesday that Elon Musk’s xAI will join their US$30 billion initiative to develop data centers and other infrastructure for artificial intelligence.
Nvidia Corp., previously named as a technical adviser to the group when it was formed last year, is also formally signing on, according to a statement that did not disclose member commitments.
The partnership, now to be called the AI Infrastructure Partnership (AIP), will channel the bulk of its resources into facilities in the United States, with a portion allocated to partner nations. AIP plans to begin deploying funds soon.
The plan allows for additional investors to come on board, aimed at attracting pensions and insurers seeking reliable, long-term infrastructure projects. Energy providers NextEra Energy Inc. and GE Vernova Inc. have agreed to collaborate with AIP to expand energy solutions needed for these large-scale data centers.
This coalition follows Microsoft’s deepening involvement in artificial intelligence outside its alliance with Sam Altman’s OpenAI, which has received about US$13 billion in support from the software giant. Bloomberg recently reported that Microsoft is working on in-house AI models that could compete with OpenAI’s offerings. Meanwhile, Musk, a co-founder of OpenAI, has publicly clashed with Altman over the latter’s decision to transition OpenAI from a nonprofit to a for-profit structure.
Companies like Softbank Group Corp. and OpenAI have also joined hands in a US$100 billion AI investment plan under the name ‘Stargate.’
The Microsoft and BlackRock-backed coalition will focus on AI data centers and energy ventures
Last year, Microsoft and BlackRock launched their coalition in coordination with MGX, a United Arab Emirates investment vehicle involved in Stargate, and with Bayo Ogunlesi’s Global Infrastructure Partners. At that time, they projected raising US$30 billion in private equity funding with the potential to leverage as much as US$100 billion in investments over an unspecified period. They also cited the need for additional backing to handle the surging power and cooling requirements of AI data centers.
According to Wednesday’s statement, the combined group will concentrate on powering AI data centers and related infrastructure projects, including energy ventures. Bloomberg has noted that data centers may consume more than 1,580 terawatt hours by 2034, an amount on par with India’s current annual energy usage.
With xAI’s entrance and Nvidia’s official status as a member, the partnership seeks to accelerate key infrastructure developments that will enable continued advancement in artificial intelligence across the globe.
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