Elon Musk’s artificial intelligence company xAI and chipmaker Nvidia are becoming partners in a multibillion-dollar AI infrastructure fund backed by BlackRock, Microsoft and Abu Dhabi, as companies rush to build data centres and energy projects to power generative AI.
The technology groups said on Wednesday they would join the so-called AI Infrastructure Partnership, with plans to initially raise $30bn from investors and companies, with the goal of securing up to $100bn in total investment including debt financing.
The investment vehicle is aimed at addressing the staggering power and digital infrastructure demands of building AI products that are expected to face severe capacity bottlenecks in the coming years. The computing power of AI requires far more energy than previous technological innovations and has strained existing energy infrastructure.