The Canadian-American investment company Brookfield Asset Management Ltd. and Qatar Investment Authority have signed an agreement to create a $20 billion joint venture to invest in AI infrastructure. This is reported in a Brookfield press release.
Brookfield and Qai, a newly established subsidiary of Qatar Investment Authority, will provide capital to invest in AI infrastructure in Qatar and select international markets against the backdrop of competition in the sector.
In recent years, Brookfield, which manages assets worth $1 trillion, has been one of the most active foreign investors in the Persian Gulf and intends to invest through a new AI fund aimed at attracting investments of up to $100 billion with the support of investors including Kuwait Investment Authority.
From Brookfield's perspective, building a global AI infrastructure over the next decade will require $7 trillion, which can be provided by Middle Eastern funds.
Over the past few years, regional leaders have increased spending on technology to reduce reliance on traditional energy sources, and are funneling billions of dollars into AI-related industries, including chips, data centers, and chatbots.
In addition, the UAE and Saudi Arabia have created multibillion-dollar funds to support AI startups, while simultaneously creating national leaders, including G42 in Abu Dhabi and Humain in Riyadh. Unlike Dubai, Abu Dhabi and Riyadh, which are financial centers, Qatar takes a cautious position as an intermediary in geopolitical conflicts.
Brookfield Asset Management Ltd. is a Canadian—American alternative asset management investment company. The company invests in the real estate sector, renewable energy, infrastructure, lending, insurance, and private equity. The headquarters is located in New York (USA).
Qatar Investment Authority (QIA) is Qatar's sovereign investment fund for managing financial resources derived from oil and gas exports in order to diversify the economy and increase its competitiveness. The value of the fund is worth $524 billion. The headquarters is located in Doha (Qatar).
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