Nvidia, Musk's xAI to Join Microsoft, BlackRock and MGX to Develop AI Infrastructure

The group is one of the biggest efforts to bankroll facilities needed to power AI applications.

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By Reuters | Updated: 20 March 2025 13:25 IST
Highlights
  • The group formed last year
  • The aim of the group is to fund AI's computing and power needs
  • The consortium has been looking to raise money from investors, corporates

Tech companies are deploying thousands of chips in clusters to meet AI-related energy demands

Photo Credit: Unsplash/ Markus Winkler

Nvidia and Elon Musk's xAI have joined a consortium backed by Microsoft, investment fund MGX and BlackRock to expand AI infrastructure in the US, the companies said on Wednesday, as a global race to dominate the nascent technology intensifies.

The group, formed last year with a goal to initially invest more than $30 billion (roughly Rs. 2,58,984 crore) in AI-related projects, is one of the biggest efforts to bankroll data centers and energy facilities needed to power AI applications such as ChatGPT.

The additions come two months after US President Donald Trump announced Stargate, a private sector AI infrastructure initiative backed by SoftBank Group, OpenAI, and Oracle, with plans to mobilise up to $500 billion (roughly Rs. 43,16,626 crore).

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Investors have committed $100 billion (roughly Rs. 8,63,500 crore) for immediate deployment, with the rest expected over the next four years.

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The consortium - which includes BlackRock's Global Infrastructure Partners - on Wednesday renamed itself as AI Infrastructure Partnership. Nvidia, a technical advisor, will continue in the role.

Training AI models and large-scale data processing require huge computational power, which increases energy consumption. To meet the demands, tech companies are deploying thousands of chips in clusters, driving a surge for specialised data centers.

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To fund the computing and power needs, the consortium has been looking to raise money from investors, asset owners and corporations, with a goal to mobilise up to $100 billion (roughly Rs. 8,63,500 crore), including debt financing.

"AIP has attracted significant capital and partner interest since its inception in September," the group said, but did not disclose the total funds raised so far.

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GE Vernova and utility firm NextEra Energy will also be a part of the group, it said, adding the renewable energy company will work on supply-chain planning and high efficiency energy solutions.

AIP said its investments will also focus on US partners and the Organization for Economic Cooperation and Development.

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

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Further reading: Nvidia, Elon Musk, MGX, Blackrock, AI, US
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