Amidst the global surge in artificial intelligence, Microsoft and BlackRock recently announced a partnership with Elon Musk's xAI to form a new AI infrastructure alliance, the "AI Infrastructure Partnership (AIP)." The core objective of this collaboration is to jointly build $30 billion worth of data centers and related AI infrastructure, with Nvidia joining as a technology advisor.

The alliance was initially launched by BlackRock, its Global Infrastructure Partners (GIP), Microsoft, and the UAE investment firm MGX. From its inception, the alliance planned to raise $30 billion in private equity capital, ultimately aiming to leverage up to $100 billion in potential investment. xAI's addition brings new energy to this plan, particularly regarding infrastructure investment, especially in energy projects.

Human-Machine Collaboration

Image Source Note: Image generated by AI, licensed through Midjourney.

BlackRock CEO Fink stated in a press release that clients like pension funds and insurance companies are increasingly demanding investment in such long-term infrastructure projects. Therefore, the alliance anticipates attracting further investor interest.

This collaboration focuses on optimizing energy supply, particularly to support the growing needs of AI data centers. The alliance has partnered with energy providers NextEra Energy Inc. and GE Vernova Inc. to accelerate the diversification of energy solutions for AI data centers. This is particularly crucial in the current energy crisis.

It's noteworthy that Microsoft already has a deep partnership with OpenAI, having invested approximately $13 billion. However, alongside its OpenAI collaboration, Microsoft is also aggressively developing its own AI models, demonstrating its strong ambitions in this field. Musk was a co-founder of OpenAI, but his relationship with current CEO Sam Altman has become increasingly strained, with disagreements on several issues.

With the heating up of AI investment, global electricity demand faces a significant challenge. By 2034, data center energy consumption is projected to exceed 1580 terawatt-hours, equivalent to India's current annual electricity consumption. Therefore, this new alliance will not only drive technological advancements but also have a profound impact on energy supply and the environment.