Brookfield launches $10B fund to expand AI infrastructure investments

Brookfield Asset Management announced plans for a new fund focused on AI infrastructure, with computer chip maker Nvidia and Kuwait’s government investment fund joining as early backers.

The firm told The Wall Street Journal about the strategy this week. The Canadian company wants to raise $10 billion in total for the fund and has already secured $5 billion from early investors. That group includes Nvidia, the Kuwait Investment Authority, and money from Brookfield itself.

With that initial money, plus additional investments from partners and borrowed funds, Brookfield says it can build and buy up to $100 billion worth of AI infrastructure. The firm plans to spread its money across different parts of the AI world, including data centers, dedicated power providers, and factories that make computer chips. Most of the money will go toward building new facilities from the ground up on empty land.

The fund has already started putting money to work. In October, Brookfield signed a $5 billion deal with Bloom Energy to install power systems in data centers. The firm also has agreements with France and Sweden to create secure AI infrastructure specifically for those governments.

Brookfield manages more than $1 trillion in total assets and already ranks as the largest infrastructure investor worldwide. The company has put over $100 billion into digital infrastructure around the globe.

Massive investment needs projected

The firm estimates that $7 trillion will be needed over the next ten years to build all the infrastructure required for AI. Brookfield wants to capture a large share of that spending, just like many other investment companies.

Companies such as Blue Owl Capital have moved aggressively into this space, providing financing for enormous data centers that cost tens of billions of dollars for companies like Meta Platforms and Oracle.

Brookfield hopes this AI infrastructure fund performs as well as another recent strategy. In 2022, the company launched a fund focused on the energy transition, investing in cleaning up heavy industry and developing renewable energy sources. The firm just closed its second energy transition fund at $20 billion.

Market concerns about AI bubble persist

However, not everyone shares the same enthusiasm about AI. The Brookfield announcement follows several days of stock market drops caused by fears of an AI bubble. Major financial institutions have warned about potential corrections in the AI sector.

Nvidia has benefited enormously from the AI boom while also investing heavily in the sector. As reported by Cryptopolitan, the chip maker previously committed to invest up to $100 billion in OpenAI, which buys Nvidia’s specialized chips. This week, Nvidia and Microsoft agreed to put up to $15 billion into Anthropic, a competitor to OpenAI.

Nvidia’s stock price has fallen slightly in recent weeks. The company reports earnings on Wednesday, which investors will watch closely as a sign of AI industry health.

Large government investment funds, including the Kuwait Investment Authority, have been pouring money into AI ventures. KIA was a major early investor in an AI partnership created by BlackRock’s Global Infrastructure Partners, Abu Dhabi’s MGX, Microsoft, and Nvidia.

President Trump is meeting with leaders from Saudi Arabia and other countries this week and is expected to announce a multibillion-dollar investment in American artificial intelligence infrastructure.

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