Microsoft, BlackRock:

Billion-dollar fund for AI infrastructure announced

The software company Microsoft and asset manager BlackRock want to launch an investment fund for artificial intelligence worth more than 30 billion dollars. The fund's capital is to flow into the construction of data centers and energy projects that meet the growing requirements in the field of AI, it was reported.

MGX, the Abu Dhabi-based investment company, will act as a partner, while AI chip manufacturer Nvidia will provide its expertise. According to the companies on Tuesday, the partnership will mobilize a total investment potential of up to 100 billion dollars, including debt financing. The investments would be made primarily in the USA, with the remainder in the partner countries.

AI models, especially those used for deep learning and big data processing, require significant computing power, which in turn requires higher energy consumption.

The computing requirements for AI have led to technology companies lining up thousands of chips in clusters to achieve the required data processing power, which has triggered a surge in demand for these specialized data centers.

According to a study, there is no end in sight to the rapid growth in artificial intelligence. Global sales of this technology will more than double to 1.27 trillion dollars by 2028, according to a study published on Tuesday by consulting firm Sopra Steria.