Nvidia, Musk’s xAI to join Microsoft, BlackRock, MGX to develop AI infra

On Wednesday, Nvidia and Elon Musk’s xAI announced their participation in a consortium supported by Microsoft, investment fund MGX, and BlackRock to enhance AI infrastructure in the US, as the global competition to lead in this emerging technology escalates.

The group, established last year with the aim of initially investing over $30 billion in AI-focused projects, is among the largest initiatives to fund data centers and energy facilities required for supporting AI applications like ChatGPT.

The new developments arrive two months after US President Donald Trump unveiled Stargate, a private sector AI infrastructure initiative supported by SoftBank Group, OpenAI, and Oracle, aiming to mobilize as much as $500 billion. Investors have pledged $100 billion for immediate use, while the remainder is anticipated over the next four years.

The group, which comprises BlackRock’s Global Infrastructure Partners, on Wednesday rebranded itself as AI Infrastructure Partnership. Nvidia, serving as a technical consultant, will maintain its position.

 Developing AI models and processing vast amounts of data demand significant computational resources, leading to higher energy usage. To fulfill the requirements, technology firms are utilizing thousands of chips in groups, causing an increase in demand for specialized data centers.

To support the computing and energy requirements, the consortium has been seeking to attract capital from investors, asset holders, and corporations, aiming to generate as much as $100 billion, which encompasses debt financing.

GE Vernova and utility company NextEra Energy will also join the group, it stated, noting that the renewable energy firm will focus on supply-chain planning and high-efficiency energy solutions. AIP stated that its investments will also target US collaborators and the Organization for Economic Cooperation and Development.