Nvidia and Elon Musk’s xAI have joined a consortium aimed at expanding AI infrastructure in the U.S., the companies announced on Wednesday. Backed by Microsoft, investment fund MGX, and BlackRock, this initiative is part of the escalating global race to dominate AI technology.
A Major Investment in AI Development
Originally established last year, the consortium set out to invest over $30 billion in AI-related projects. It is one of the largest efforts to finance the development of data centers and energy facilities essential for powering AI applications like ChatGPT.
This move comes just two months after former U.S. President Donald Trump introduced Stargate, a private-sector AI initiative supported by SoftBank Group, OpenAI, and Oracle, with plans to generate up to $500 billion in funding. Investors in the consortium have already committed $100 billion for immediate deployment, with additional funds expected over the next four years.
Consortium Renamed as AI Infrastructure Partnership (AIP)
On Wednesday, the group announced its rebranding as the AI Infrastructure Partnership (AIP). Nvidia will continue in its role as a technical advisor.
With AI training and large-scale data processing requiring vast computational power, energy consumption has surged. To meet these demands, tech firms are deploying thousands of AI chips in large clusters, increasing the need for specialized data centers.
Securing Funding and Renewable Energy Solutions
To support its ambitious goals, AIP is raising capital from investors, asset owners, and corporations, targeting up to $100 billion, including debt financing.
Since its formation in September, the initiative has attracted substantial funding and interest, though the total amount raised has not yet been disclosed. GE Vernova and utility firm NextEra Energy have also joined the partnership, with NextEra set to focus on supply-chain planning and high-efficiency energy solutions.
AIP has stated that its investments will prioritize U.S. partners and those within the Organization for Economic Cooperation and Development (OECD), reinforcing its commitment to AI infrastructure development.
