Microsoft Corp., the biggest backer of Sam Altman’s OpenAI, and BlackRock Inc., which has an executive on the artificial intelligence startup’s board, are joining forces with one of his chief rivals.
Microsoft and BlackRock said Wednesday that Elon Musk’s xAI is joining their effort to build US$30 billion worth of data centers and other artificial intelligence infrastructure. The AI chipmaker Nvidia Corp., which was already named as a technical adviser to the group when it was announced last year, is also formally joining, according to a statement that didn’t detail member commitments.
Microsoft, which has invested about US$13 billion in OpenAI, has increasingly been developing AI outside of that partnership. The software giant has created in-house AI models that it believes can compete with OpenAI, Bloomberg reported this month. Musk, also a co-founder of OpenAI, has meanwhile publicly feuded with Altman over the company’s efforts to shift to a for-profit structure.
The capital demands and enthusiasm for AI have prompted a range of companies and investors to forge alliances to build some of the biggest data center campuses in the world. US President Donald Trump has touted hundreds of billions of dollars worth of commitments from firms including Softbank Group Corp. and OpenAI, which are behind a US$100 billion AI investment plan dubbed Stargate.
The Microsoft-backed group will be renamed the AI Infrastructure Partnership, or AIP, and focus on infrastructure investments — including energy projects — mostly in the US, with a portion of the funds to be deployed in partner countries, according to the companies. The plan foresees bringing on additional investors. Clients, including pensions and insurers, are eager for such long-term infrastructure projects, BlackRock Chief Executive Officer Larry Fink said in the statement.
BlackRock and Microsoft last year unveiled the coalition in partnership with MGX, an United Arab Emirates investment vehicle that is also involved in Stargate, and Bayo Ogunlesi’s Global Infrastructure Partners. The companies said at the time they would seek US$30 billion of private equity capital over an unspecified time frame and eventually leverage as much as US$100 billion in potential investments.
The consortium said energy suppliers NextEra Energy Inc. and GE Vernova Inc. have “agreed to collaborate with AIP to accelerate the scaling of critical and diverse energy solutions for AI data centers.” In January, the two companies announced a partnership to capitalize on the surge in spending for AI data centers.
The rush to invest in AI has had enormous impact on global electricity demand. By 2034, energy consumption from data centers is expected to top 1,580 terawatt hours, as much as used in India today, Bloomberg reported last year.
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Mark Bergen and Alex Dooler, Bloomberg News
--With assistance from Omar El Chmouri.
©2025 Bloomberg L.P.
