Elon, AI and the Middle East

Welcome to AI Collision 💥,

In today’s collision between AI and our world:

• xAI and Nvidia join the Middle East
• What’s the real story here?
• What do you think happens to AI energy?

If that’s enough to get the consortiums building, read

AI Collision 💥

In September 2024, BlackRock made a big $30 billion play into AI infrastructure. They launched a fund, the Global Infrastructure Partners fund to invest heavily in the sector.

Leading the seeding of the fund was BlackRock (obviously) but also Microsoft and Middle East investment company, MGX. Nvidia came on as an “adviser” to the investment fund.

MGX, only established in 2024, is an artificial intelligence-focused investment fund from Abu Dhabi, chaired by Sheikh Tahnoon bin Zayed al-Nahyan.

As they say on their website,

MGX is a leading AI and advanced technology investor committed to accelerating the responsible development of AI-led technologies that will deliver a positive economic and social impact.

Their investment strategy revolves around, “Semiconductor, AI Infrastructure, AI Technology”.

They are well capitalised, with the right connections, partners and strategy. They clearly want to connect the middle east with American AI opportunities.

And that bridge just got a whole lot stronger.

As per an announcement on MGX’s site yesterday:

BlackRock, Global Infrastructure Partners (GIP), a part of BlackRock, Microsoft, and MGX today announced that NVIDIA and xAI will join the Global AI Infrastructure Investment Partnership, now named the AI Infrastructure Partnership (AIP), further strengthening the partnership’s technology leadership as the platform seeks to invest in new and expanded AI infrastructure. NVIDIA will also continue in its role as a technical advisor to AIP, leveraging its expertise in accelerated computing and AI factories to inform the deployment of next-generation AI data center infrastructure.

It’s certainly a couple of big names to join the increasingly powerful fund that’s aiming to build out more AI infrastructure projects (datacentres) in the coming years.

Nvidia’s CEO, Jensen Huang said,

The global buildout of AI infrastructure will benefit every company and country that wants to achieve economic growth and unlock solutions to the world’s greatest challenges.

AI factories built on Nvidia full-stack AI infrastructure will convert data into intelligence that will accelerate every industry and help society achieve unimaginable breakthroughs.

What’s also very interesting about this announcement though is the involvement of GE Vernova and NextEra energy.

These energy companies are clearly there to help ensure whatever does get built has sufficient energy resources to operate.

This demand for AI energy is not going away. And as it currently stands, there isn’t enough energy now to power what’s coming. It’s something that we all need to look very seriously at because green energy isn’t going to cut it, so perhaps we have to roll back to some of the energy sources we’re more used to short term. Gas, oil and fossil fuels I think are going to form a concrete part of the AI energy mix and I know my colleague John Butler has a lot to say about the future direction of oil and the opportunities it presents.

But for me, it’s oil, gas, nuclear and solar that solve the AI energy problems, maybe something else down the track that AI and quantum computing help solve too.

I’m just saying, for all the big developments in AI, maybe we should be thinking a lot harder about where and how it’s going to draw its energy, today, tomorrow and in 100 years’ time.

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Boomers & Busters 💰

AI and AI-related stocks moving and shaking up the markets this week. (All performance data below over the rolling week).

Boom 📈

• Hewlett-Packard Enterprise (NYSE:HPE) up 8%
• Micron (NASDAQ:MU) up 6%
• AMD (NASDAQ:AMD) up 5%

Bust 📉

• Tesla (NASDAQ:TSLA) down 5%
• Meta (NASDAQ:META) down 5%
• Amazon (NASDAQ:AMZN) down 2%

From the hive mind 🧠

• Softbank loves to shop, and spend, and just drop $65 billion on an up and coming chip maker.
• Quantum day is today, so we don’t know what will come of it all just yet. But we do know that quantum is going to be on Nvidia’s radar regardless of what the market thinks short term.
• Nvidia is selling so many AI chips that the market literally can’t keep track of it all. They only went and forgot the billions that Meta is going to spend up on Nvidia GPUs…

Artificial Polltelligence 🗳️

Weirdest AI image of the day

Characters in old muslim VHS cartoons.

ChatGPT’s random quote of the day

Thanks for reading, and don’t forget to leave comments and questions below,

Sam Volkering

Editor-in-Chief

AI Collision