- xAI and Nvidia have officially joined Microsoft and BlackRock’s $30 billion AI Infrastructure Partnership (AIP) to develop AI-focused data centers.
- The initiative will primarily focus on building facilities in the U.S. while also expanding to partner countries, with plans to attract pension funds and insurers as investors.
- Microsoft continues to expand its AI presence beyond OpenAI, while Musk’s xAI becomes a key part of this major AI infrastructure effort despite his past conflicts with OpenAI.
Microsoft and BlackRock said that Elon Musk’s xAI will join their $30 billion initiative to create AI-centric data centers and infrastructure. Nvidia, which first signed on as a technical advisor, has since become an official participant.
The project, which has been rechristened as the AI Infrastructure Partnership (AIP), will see most facilities developed in the U.S. while some will go to partner countries. The team will soon start deploying the investments.
Expanding Investment Opportunities
The program is available for other investors and hopes to secure pension funds and insurers seeking long-term projects. AIP has also collaborated with energy firms such as NextEra Energy and GE Vernova to finance the power requirements of large data centers.
The market for AI infrastructure has been growing, and the program hopes to meet increasing power and cooling demands.
Microsoft’s foray into AI goes beyond its $13 billion investment in OpenAI. The company is reportedly developing its own AI models that can rival OpenAI.
Meanwhile, Musk, who was once a co-founder of OpenAI, has publicly lambasted Sam Altman for transforming OpenAI from a nonprofit to a for-profit organization. In spite of their differences, Musk’s xAI is now an integral part of this new alliance.
Addressing the Rising Energy Demand
The group began last year with UAE’s MGX and Global Infrastructure Partners. They were set to raise $30 billion of private capital initially, with potential to raise as much as $100 billion. The venture calls attention to rising energy requirements by AI data centers, which have the potential to use as much energy as India currently does in 2034.
With xAI and Nvidia on board officially now, AIP seeks to accelerate infrastructure development to cater to AI development across the globe. The priority will be ensuring the availability of required facilities and energy solutions that can cope with increasing artificial intelligence demands.
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