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Musk's xAI Joins Microsoft-BlackRock $30 Billion AI Fund

Mar 19, 2025 - financialpost.com
Microsoft Corp. and BlackRock Inc. are collaborating with Elon Musk's xAI to develop $30 billion worth of data centers and AI infrastructure. This partnership, which includes Abu Dhabi’s MGX and AI chipmaker Nvidia Corp., aims to build significant infrastructure primarily in the US, with some investments in partner countries. The initiative, called the AI Infrastructure Partnership (AIP), will focus on energy projects to support AI data centers, with energy suppliers like NextEra Energy Inc. and GE Vernova Inc. collaborating to scale energy solutions.

The collaboration reflects the growing demand for AI infrastructure, driven by increasing capital needs and enthusiasm for AI technologies. Microsoft, which has invested heavily in OpenAI, is also developing its own AI models. Meanwhile, MGX is supporting both OpenAI and xAI, and is involved in US President Donald Trump’s $100 billion AI investment plan. The consortium plans to attract additional investors, with long-term infrastructure projects appealing to clients like pensions and insurers.

Key takeaways:

  • Microsoft Corp. and BlackRock Inc. are collaborating with Elon Musk's xAI to build $30 billion worth of AI infrastructure.
  • The AI Infrastructure Partnership (AIP) will focus on infrastructure investments, including energy projects, primarily in the US.
  • Energy suppliers NextEra Energy Inc. and GE Vernova Inc. will collaborate with AIP to scale energy solutions for AI data centers.
  • By 2034, energy consumption from data centers is expected to reach 1,580 terawatt hours, equivalent to India's current usage.
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