Technology giant Microsoft (MSFT) and asset manager BlackRock (BLK) have joined forces to raise up to $100 billion U.S. for investments related to artificial intelligence (A.I.).
Specifically, Microsoft and BlackRock are looking to fund A.I. data centres and the energy that’s needed to power them.
The new investment group is called the “Global Artificial Intelligence Infrastructure Investment Partnership,” or GAIIP. Other members include Global Infrastructure Partners and MGX, a technology investor based in the United Arab Emirates.
The group aims to raise $30 billion U.S. of initial capital, with a future goal of raising $100 billion U.S., including through debt financing.
The investment group is being formed as technology companies scramble to build data centres that can run powerful generative A.I. models and applications.
The data centres consume vast amounts of electricity and soaring demand has pressured existing utilities and strained energy grids in the U.S.
Microsoft’s investment also comes as the company seeks to expand its Azure public cloud computing platform, which supplies A.I. customers.
The stock of Microsoft has risen 17% so far this year and currently trades at $435.15 U.S. per share.
BlackRock’s stock has gained 13% year to date and trades at $904.52 U.S. a share.
