Brookfield launches cloud business amid AI craze, The Information reported

Dec. 31 (Reuters) – Brookfield (BN.TO)opens a new tab is launching its own cloud business to lease chips in its data centers directly to artificial intelligence developers to gain end-to-end control of the AI value chain, The Information reported on Wednesday.

The cloud business is tied to a new $10 billion AI fund the company is launching and a cloud company called Radiant run by Brookfield, the report added.

Radiant will have priority in leasing data centers developed under the fund, the report said, citing people 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 $100 billion AI infrastructure program led by the Brookfield Artificial Intelligence Infrastructure Fund, with half of the fund's $10 billion commitment goal met by a group of institutional and industry partners, including technology leader Nvidia (NVDA.O).opens a new tab and the Kuwait Investment Authority.

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.

Combining Brookfield's energy and real estate-focused portfolio with its cloud business will allow the company to control the inputs of the AI value chain in a way that pure cloud providers cannot access.

Traditional cloud giants such as Amazon (AMZN.O)opens a new tabMicrosoft (MSFT.O)opens a new tabOracle (ORCL.N)opens a new tabCompanies already facing declining returns from capital expenditures may face further pressure to optimize energy logistics and capital efficiency.

Reporting by Atibu Bhandari in Bengaluru. Edited by: Varun HK

Our standards: Thomson Reuters Trust Principles.opens a new tab

Source link