BlackRock, Microsoft Target AI Energy Needs with $30 Billion Fund
The post BlackRock, Microsoft Target AI Energy Needs with $30 Billion Fund appeared on BitcoinEthereumNews.com.
BlackRock and Microsoft have partnered to form a new group that aims to create a $30 billion investment fund dedicated to artificial intelligence (AI) data centers. This move comes as demand for AI technology continues to surge, requiring vast computing power and energy to operate efficiently. AI Energy Demands Spark New Opportunities for Bitcoin Miners The fund aims to raise $30 billion in equity investments through BlackRock’s infrastructure unit, Global Infrastructure Partners (GIP). This will enable it to leverage an additional $70 billion in debt financing. Meanwhile, Microsoft, Abu Dhabi’s MGX, and chipmaker Nvidia will lead the project. They will ensure the facility’s design and implementation incorporate the latest technologies to meet AI’s high computational needs. The new fund will focus on building data centers capable of handling the energy-intensive operations of generative AI tools. Read more: AI in Finance: Top 8 Artificial Intelligence Use Cases for 2024 This investment initiative comes as the energy and infrastructure sectors become increasingly intertwined. Artificial intelligence, especially models like OpenAI’s ChatGPT, is straining current digital infrastructure with its massive computing needs. These models require significantly more energy than earlier technologies, creating a bottleneck in building the necessary AI infrastructure. This growing demand has become a major hurdle to further AI development. However, such a situation can benefit several parties. For instance, Nvidia, known for its AI-processing GPUs, will be crucial in developing the factories for these data centers. Additionally, given their expertise in energy management, Bitcoin miners are emerging as key players in this new segment. This phenomenon is evident in some investments and initiatives from Bitcoin miners in this area. BeInCrypto reported that Core Scientific, one of the major Bitcoin mining companies, signed a $3.5 billion contract with Nvidia-backed CoreWeave in June. This contract aims to upgrade its facilities for AI and…
Filed under: News - @ September 18, 2024 3:24 am