Musk's xAI Startup 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 Nvidia Corp. as a technical adviser, aims to build some of the largest data center campuses globally. The initiative, named the AI Infrastructure Partnership (AIP), will focus on infrastructure investments, including energy projects, primarily in the US, with some funds allocated to partner countries. The consortium plans to attract additional investors, with energy suppliers like NextEra Energy Inc. and GE Vernova Inc. agreeing to collaborate on scaling energy solutions for AI data centers.
The collaboration reflects the growing demand for AI infrastructure, driven by capital needs and enthusiasm for AI technologies. Microsoft, which has invested significantly in OpenAI, is developing its own AI models to compete in the market. The partnership is part of a broader trend of companies and investors forming alliances to support AI development, with US President Donald Trump highlighting significant commitments from firms like Softbank Group Corp. and OpenAI. The energy consumption from data centers is projected to rise significantly, underscoring the importance of sustainable energy solutions in supporting AI advancements.
Key takeaways:
Elon Musk's xAI is joining a $30 billion AI infrastructure fund with Microsoft and BlackRock.
The AI Infrastructure Partnership (AIP) will focus on building data centers and energy projects, primarily in the US.
Nvidia Corp. is joining the partnership as a technical adviser.
The consortium aims to leverage up to $100 billion in potential investments for AI infrastructure.
