Microsoft and BlackRock Look To Extend AI Domination In Their Fields With $30B Fund

By Christopher Steiner

BlackRock and Microsoft, leaders in AI according to Index42.com, are expanding their reach by launching the Global Artificial Intelligence Infrastructure Investment Partnership (GAIIP) with MGX, a tech-focused investment firm from the United Arab Emirates, backed by Abu Dhabi’s Mubadala and AI company G42. GAIIP aims to raise $30 billion in private equity, with the potential to deploy up to $100 billion, including debt financing. The initiative seeks to address the growing demand for AI infrastructure, particularly energy-intensive data centers powered by Nvidia’s GPUs, which are crucial for AI workloads.

The investment will focus primarily on the U.S., where the growth of AI is constrained by shortages in hardware, power, and facilities needed for large-scale data centers. By 2030, AI-driven data centers could account for an 8% increase in U.S. energy consumption, highlighting the critical need for additional infrastructure. This partnership seeks to build and finance such projects, blending the expertise of Microsoft and BlackRock with capital from pension funds and insurance companies looking for stable, long-term returns.

This move builds on the strengths of the partners involved. Microsoft has been rapidly expanding its AI and cloud infrastructure, spending billions to support services like Azure and OpenAI’s platforms. BlackRock, the world’s largest asset manager, has been moving aggressively into private investments through acquisitions like Global Infrastructure Partners (GIP), which also participates in GAIIP. The fund's structure allows Microsoft and other tech companies to free up capital for innovation while pension funds and insurers earn steady returns from infrastructure investments.

MGX, a relatively new player, launched in 2024 with the backing of Abu Dhabi’s Mubadala and AI firm G42. The UAE, through MGX, aims to bolster its footprint in the global tech landscape, making significant inroads into AI infrastructure. MGX’s role in the partnership aligns with its broader strategy of investing in emerging technologies, positioning it as a key player in the future of AI.

Together, BlackRock, Microsoft, and MGX aim to drive the next wave of AI infrastructure, addressing both the technical and financial challenges of scaling AI to meet increasing demand.