Key Takeaways:
Microsoft and BlackRock are spearheading a coalition of companies in a new endeavor to raise up to $100 billion to develop data centers specifically designed for artificial intelligence (AI) and the energy infrastructure required to power them.
Oh wow that’s just what we were hoping for…
BlackRock and Vanguard to have even more power over us 🙃
— Jamie 🇺🇲 🇨🇦 (@LibertyJamison) September 17, 2024
This initiative, launched under the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP), was announced in a recent press release and includes several key participants: Global Infrastructure Partners (GIP), a major infrastructure investor currently being acquired by BlackRock, and MGX, a tech investment firm based in the United Arab Emirates.
Sounds like Skynet.
— Bronx Voice (@Bronxvoice1) September 18, 2024
The fund will initially target $30 billion in equity capital, with plans to leverage additional debt financing to reach its $100 billion goal.
The primary focus will be on constructing new AI data centers and expanding existing facilities, alongside investing in energy infrastructure projects critical for supporting the extensive computational and power needs of AI workloads.
This investment is being driven by the escalating demand for AI technologies, which require vast amounts of computing power.
Companies like Microsoft have been racing to build data centers equipped with Nvidia graphics processing units (GPUs), which are essential for running generative AI models such as those powering OpenAI’s ChatGPT.
Translation: They are spending fortunes to gather data to breach your privacy.
— 𝘓𝘈𝘜𝘎𝘏𝘐𝘕𝘎 𝘉𝘜𝘋𝘋𝘏𝘈 (@MahmudZees86763) September 17, 2024
These GPUs are known for their high energy consumption, creating a substantial demand for new and expanded facilities.
The AI infrastructure initiative comes at a time when Microsoft is already heavily invested in expanding its AI and cloud capabilities.
This AI shit is going to be dangerous with these owner/operators.
— None Of Your Business (@liberalsblo) September 17, 2024
The company’s capital expenditures to support infrastructure for its Azure public cloud, which supplies AI services to OpenAI and other clients, reached $19 billion in the fiscal fourth quarter, including assets acquired under finance leases.
Meanwhile, BlackRock’s strategic moves in the AI sector have included its announcement in January of plans to acquire Global Infrastructure Partners (GIP) for $3 billion in cash and approximately 12 million shares of BlackRock common stock.
But but but… They said ai is bad. Dangerous. Will ruin all of humanity. Nothin a billion dollars cant fix I guess…….
— Queenies🌬🌪🇺🇲 (@suzwithaz) September 17, 2024
The deal is expected to close on October 1. MGX, a key partner in this fund, was launched in March with backing from Abu Dhabi’s Mubadala and AI firm G42.
As the demand for AI technology surges, driven by advancements in machine learning, deep learning, and other computationally intensive AI applications, the need for specialized infrastructure has never been greater.
Demand for power is coming at us like a tsunami.
— Patrick Rooney (@patrickrooney) September 17, 2024
The GAIIP fund is poised to meet this demand by constructing new data centers and enhancing energy capabilities to support AI operations, aiming to ensure a robust and sustainable foundation for the future growth of AI across various sectors.
August 24, 2024: Microsoft’s Phi-3.5 AI Model Surpasses AI Giants Gemini and GPT-4! August 22, 2024: Microsoft Criticized for DEI Team Layoffs Despite Diversity Pledges! August 21, 2024: Microsoft Partners with Lumen to Tackle AI Data Center Demands! August 12, 2024: Palantir and Microsoft Join Forces to Serve Federal AI NeedsCheck Out More Microsoft Related Updates!
For more news and trends, visit AI News on our website.