Elon Musk's AI Startup (xAI) and Nvidia (NVDA) Join Microsoft, BlackRock, MGX AI Fund

Elon Musk's AI Startup and Nvidia Team Up with Microsoft, BlackRock, and MGX AI Fund

The main goal of the project, launched in September last year, is to attract $30 billion in funding.

Author: Helen Brown | Edited by: Stephen Alpher Updated: 19 Mar 2025 18:03 UTC Published: 19 Mar 2025 15:54 UTC

Key points:

• Elon Musk's xAI and Nvidia Team Up with BlackRock, Microsoft, and MGX to Develop AI Infrastructure in the U.S.
• The AI Infrastructure Partnership plans to invest over $30 billion in data centers and energy projects to support AI models.
• The first data center, scheduled for completion in 2026, will house 400,000 Nvidia AI chips in Abilene, Texas.

Two leading artificial intelligence companies, Elon Musk's xAI and Nvidia, have teamed up with BlackRock, Microsoft and investment fund MGX to expand AI infrastructure across the U.S., the announcement was made Wednesday.

The fund, called the AI Infrastructure Partnership, announced its intention to start with more than $30 billion in seed funding when it was launched last September. Its main goal is to build the data centers and energy projects needed to support large-scale AI models.

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Nvidia will also act as a technical advisor to the group, as announced last year.

Musk and Nvidia's collaboration comes two months after US President Donald Trump announced the creation of Stargate, a private venture that aims to build up to 20 large AI data centres in the United States in partnership with OpenAI, Oracle and SoftBank.

The first data center will be built in Abilene, a small city in Texas, and is scheduled to be completed by mid-2026, Bloomberg reported yesterday. It will be able to house about 400,000 Nvidia AI chips and will have a capacity of 1.2 gigawatts of electricity.

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