BlackRock, the world's largest asset manager, is teaming up with Microsoft to create a $30 billion investment fund. The fund's main goal is to build data centers and energy projects to meet the growing demand for AI products.
High Demand and New Opportunities
The demand for AI products is skyrocketing, putting pressure on existing energy systems. The new fund aims to build infrastructure to prevent bottlenecks that could slow down AI progress. Larry Fink, BlackRock's founder and CEO, noted that he hasn't seen this level of demand for AI in his 50 years in finance.
Energy Needs of AI
AI products require significantly more power than previous technologies. The International Energy Agency (IEA) estimates that global electricity consumption by data centers could hit over 1,000 terawatt-hours by 2026, double the amount used in 2022. Microsoft and BlackRock are actively investing in infrastructure to handle this growth.
Future Projects and Infrastructure
Microsoft and BlackRock did not respond to requests for comment. However, it is clear that the new fund is all about preparing for the future of AI. Tech companies are racing to build data centers loaded with Nvidia's GPUs, which are critical for running AI models like OpenAI’s ChatGPT.
The AI infrastructure investment fund by BlackRock and Microsoft is a significant initiative for the development of future technologies. The fund addresses urgent needs in energy and infrastructure, enabling the growth and evolution of artificial intelligence.
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