As the global race for AI accelerates, 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 group is one of the biggest efforts to bankroll data centers and energy facilities needed to power AI applications such as ChatGPT.
The initiative comes 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).
Investors have committed $100 billion (roughly Rs. 8,63,500 crore) for immediate deployment, with the rest expected over the next four years. The consortium - which includes BlackRock's Global Infrastructure Partners - 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, which in result I driving a surge for specialised data centers.
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.
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