A $30 billion fund to be launched by Microsoft and asset management BlackRock to finance investments in artificial intelligence infrastructure, including data centres and energy hubs.

The alliance, which will be known as the Global AI Infrastructure Investment Partnership, aims to maintain AI development in the United States by primarily funding American enterprises.

Microsoft said that MGX, an Abu Dhabi investment institution, will be a general partner in the fund and that NVIDIA will support the cooperation.

The fund intends to raise a maximum of $100 billion in total capital, including debt funding.

The decision was made in response to the rising need for additional infrastructure to support the AI development sector. The generative AI apps that have gained a lot of traction in the last year demand a lot of processing power, which drives up energy costs.

Data centre demand is anticipated to increase significantly along with the demand for renewable energy sources and AI.

Over the past year, Microsoft has made significant investments in artificial intelligence (AI), integrating it into a number of its products with differing degrees of success. The business has said that it intends to increase capital expenditure on AI throughout the upcoming quarters even further.

(Sources: investing.com, reuters.com)