Abu Dhabi’s MGX, Microsoft, BlackRock partner to launch $30bn AI fund

Abu Dhabi tech investment firm MGX has teamed up with BlackRock, Global Infrastructure Partners (GIP), and Microsoft to launch a $30bn fund that will invest in artificial intelligence to build data centres and energy projects.

The companies said in a statement that the investment vehicle, known as the Global AI Infrastructure Investment Partnership, aims to enhance AI supply chains and energy sourcing. The partnership will mobilise up to $100bn in total investment potential, including debt financing.

The infrastructure investments, which seek to fuel AI innovation and economic growth, will be chiefly in the US and the remainder in its partner countries. The plan includes bringing on additional investors, and pensions and insurers are eager for such long-term infrastructure investments.

MGX will be a general partner in the fund, while AI chip firm Nvidia will provide expertise, the statement added.

We’re announcing AI infrastructure investment news today to enhance American competitiveness in AI while meeting the growing need for energy infrastructure to power economic growth: https://t.co/OdIZtuH779

— Microsoft News and Stories (@MSFTnews) September 17, 2024

“Artificial intelligence is not just an industry of the future; it underpins the future. Through this unique partnership, we will enable faster innovation, technological breakthroughs and transformational productivity gains across the global economy,” said Sheikh Tahnoon bin Zayed Al Nahyan, chairman of MGX.

AI models, especially those used for deep learning and large-scale data processing, resulting in increased energy consumption.

To meet AI’s computing needs, tech companies have resorted to connecting thousands of chips in clusters to achieve the requisite data-crunching capacity. This has fueled a surge in demand for these specialised data centres.

The UAE created MGX in March to invest in AI companies and the infrastructure required to make the technology more widely available. It counts sovereign wealth fund Mubadala Investment and G42 as its founding partners.

The investment firm is reportedly in talks with OpenAI as part of a multibillion-dollar fundraising round for the startup behind ChatGPT.

Read: UAE’s G42, Microsoft to build two AI centres in Abu Dhabi