Brookfield BN-T is launching its own cloud business to lease chips in its data centers directly to artificial intelligence developers in a bid to gain end-to-end control of the AI value chain, The Information reported Wednesday.
He added that the cloud business will be tied to a new $10 billion AI fund the company is launching and a cloud company called Radiant run by Brookfield.
Radiant will have priority in leasing data centers developed under the fund, the report said, citing a person with direct knowledge of the company's strategy. The fund is developing data center projects in France, Qatar and Sweden.
In November, Brookfield launched a US$100 billion AI Infrastructure Program supported by the Brookfield Artificial Intelligence Infrastructure Fund, with half of the fund's US$10 billion commitment goal met by a group of institutional and industry partners including technology standard-bearer Nvidia and the Kuwait Investment Authority.
Brookfield to invest $5 billion to strengthen AI data center with Bloom Energy
Brookfield did not immediately respond to a Reuters request for comment.
The move underscores growing concerns in the market about industrial constraints on fast-growing AI-related capital spending, and has drawn criticism for increasing pressure on utilities.
Combined with Brookfield's energy and real estate focused portfolio, the cloud business will give the company control over the inputs of the AI value chain in a way that pure cloud providers cannot access.
Traditional cloud giants such as Amazon, Microsoft, and Oracle are already facing lost returns on capital expenditures and may be forced to further optimize energy logistics and capital efficiency.
