Microsoft and BlackRock have embarked on a groundbreaking collaboration, joining forces to form a group of companies aimed at raising up to $100 billion. The funds will develop data centers specifically designed for artificial intelligence (AI) and the necessary energy infrastructure to power them.
This ambitious initiative, announced through a press release on Tuesday, September 17, marks a significant step in the tech industry’s efforts to advance AI capabilities.
The Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP) seeks to assemble an initial $30 billion in capital, with future aspirations to reach $100 billion, including contributions from debt financing. Microsoft CEO Satya Nadella emphasized the importance of the initiative, stating:
“We are committed to ensuring AI helps advance innovation and drives growth across every sector of the economy.” – Microsoft CEO Satya Nadella
Microsoft’s investment in this partnership underscores its dedication to building the energy infrastructure necessary for AI workloads, which could amass to $100 billion. This investment complements Microsoft’s existing capital expenditures required for expanding its Azure public cloud services, which supply customers like OpenAI with AI capabilities. The partnership also involves other key players, including Abu Dhabi’s Mubadala, AI firm G42, Global Infrastructure Partners (GIP), and MGX—a tech investor from the United Arab Emirates.
The tech industry has been racing to construct data centers equipped with Nvidia graphics processing units (GPUs), essential for running generative AI models such as those powering OpenAI’s ChatGPT chatbot. The GAIIP aims to address this demand by building both new and existing data centers with an initial fundraising target of $30 billion. Nadella highlighted the collaborative spirit of the initiative, saying it brings:
“together financial and industry leaders to build the infrastructure of the future and power it in a sustainable way.” – Microsoft CEO Satya Nadella
BlackRock’s involvement in this partnership is further solidified by its acquisition of GIP. In January, BlackRock announced its intent to purchase GIP for $3 billion in cash and approximately 12 million shares of its common stock. This deal is expected to finalize on October 1, marking a significant milestone for both companies.
Moreover, Microsoft’s recent financial disclosures reveal substantial capital investments. In July, the company reported that its fiscal fourth-quarter capital spending, including assets acquired under finance leases, totaled $19 billion. This highlights the scale of resources being dedicated to supporting infrastructure expansion.
