$30 Billion AI Infrastructure Fund Launched! Led by Microsoft, BlackRock, and MGX, with Participation from Musk’s xAI and NVIDIA
Microsoft, BlackRock, and UAE Investment Institution MGX Partner to Launch a $30 Billion AI Infrastructure Fund; Elon Musk’s AI Company xAI Joins the Fund
Microsoft, BlackRock, and UAE investment institution MGX will jointly launch a $30 billion AI infrastructure fund, and Elon Musk’s AI company xAI has officially joined the fund. NVIDIA, a leader in AI chips, will serve as the technical advisor for the fund.
xAI Joins the Race, Aligns with Microsoft and BlackRock
According to Bloomberg, this AI infrastructure fund was first announced in late 2023 by Microsoft, BlackRock, MGX, and Global Infrastructure Partners, aiming to raise $30 billion in private funding and leverage it to $100 billion.
On March 20, Musk’s xAI officially joined the fund, while NVIDIA, as a leader in AI chips, will serve as the technical advisor.
Internal Conflicts at OpenAI: Microsoft and Musk Pursue Independent AI Development
Microsoft is currently the largest financial supporter of OpenAI, having invested about $13 billion. However, it is actively developing its own AI models to reduce its reliance on OpenAI. On the other hand, Musk and OpenAI CEO Sam Altman had a falling out over OpenAI’s shift to a for-profit model. In 2023, Musk founded xAI, which aims to compete with OpenAI by focusing on true AI.
The involvement of xAI in the AI infrastructure fund means Musk’s influence in the AI field will expand further, and the AI competition is set to intensify.
AI’s High Energy Consumption Makes Energy Supply a Key Issue
The $30 billion funding will primarily be invested in US AI infrastructure, including AI servers, data centers, and other facilities, and will also extend to some partner countries. As the demand for AI computing surges, energy supply has become a focal point of concern.
To address the high energy demands of AI data centers, the fund has gained support from energy companies such as NextEra Energy and GE Vernova to develop larger and more diversified solutions. According to Bloomberg, global AI-related data centers are expected to consume over 1580 terawatt-hours (TWh) of electricity by 2034, which is equivalent to the current electricity consumption of all of India, posing a challenge to the global power grid.
UAE’s MGX Driving the Project, Tied to US AI Policies
The massive AI investment project is also driven by MGX from the UAE, which not only invested in OpenAI but also injected capital into xAI and even participated in Donald Trump’s $100 billion AI project, Stargate.
Earlier this week, the key figure behind MGX, UAE National Security Advisor Sheikh Tahnoon, met personally with Trump to discuss the UAE’s technology and energy investment plans in the US, highlighting that AI has become the central battlefield of global politics and economic competition.
The AI Infrastructure Race Heats Up, Institutional and Corporate Investors Actively Positioning Themselves
As the AI investment boom intensifies, major global enterprises and institutional investors are positioning themselves. BlackRock CEO Larry Fink noted that global retirement funds, insurance companies, and other long-term capital sources are highly interested in AI infrastructure projects, and more investors are expected to join in the future.
Currently, companies such as Microsoft and BlackRock have decided to rename the AI fund as the AI Infrastructure Partnership (AIP) and continue to expand infrastructure investments to ensure the vast resources needed for AI industry development.
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