Blackrock and Microsoft plan to launch a more than US$30 billion fund to invest in artificial intelligence infrastructure to build data centres and energy projects, the companies said on Tuesday.

AI Models especially those used for deep learning and large scale data processing require substantial computational power leading to higher energy consumption.

A computing requirements for AI have dictated that teh companies string together thousands of chips in clusters to achieve the nececssary amount of data crunching power leading to asurge in the demand for these specialised data centres.

The investment vechicle knon as Global AI infrastructure investments partnership aims to help enhance AI supply chains and energy spurcing Balckrock and Micrrosoft said.

MCX, the Abu Dhabi-backed investment company will be a general partner in the fund while AI chip firm Nvidia will provide expertise. The partnership will mobile a potential US$100 billion in investment when including debt financing.

Reuters