Why is BlackRock Investing Billions on AI Infrastructure? Their 6 Core Strategies Breakdown

At the Techsauce Global Summit 2025, one of the most talked-about sessions saw Kfir Godrich (Chief Innovation Officer, BlackRock) shift the conversation from simply 'investing in AI' to the more critical strategy of AI infrastructure investing. In discussion with Pailin Vichakul (CIO, SCB 10X), the session went beyond surface-level questions to delve deep into the structural trends of a major global transformation, viewed from the perspectives of investors, technology users, and the architects of an AI-driven future.

1. AI Investment Is More Than Models; It's About Building a New Global Foundation

BlackRock views AI investment in three distinct phases:

• Phase 1: Infrastructure Buildout
• Phase 2: Widespread Adoption
• Phase 3: Corporate and Economic Transformation

“We are currently transitioning from Phase 1 to Phase 2,” Kfir stated. This means the world is beginning to see real-world AI implementation at the enterprise level, but we have not yet reached the point of full economic value creation. “The turning point will be when the budget for inference surpasses the budget for training.”

2. Thousands of AI Applications Will Die; Only the Truly Innovative Will Survive

Although investment in AI applications is booming, major investors don't automatically consider anything with “AI” to be a worthy investment. He noted that applications with only a superficial AI layer, lacking real innovation, will not last. 

Applications that merely add an AI layer without genuine innovation will not last long,

While companies worldwide are trying to adapt by adding AI features to their products, BlackRock focuses its investments on “Lego Pieces”—fundamental technological components that can be assembled to build larger, more complex systems.

3. Know Your Stack: Understand What You're Actually Buying in AI

Kfir cautioned that investors and organizations must do their homework more diligently.

Every time we invest, we must be able to distinguish whether we are ‘truly buying AI’ or just ‘buying the term AI’.

Therefore, evaluating an AI startup or technology involves more than just looking at a pitch deck. It requires deep-dive data, internal analysis, and specialized tools, such as Asimov, a proprietary technology assessment system developed by BlackRock to track 15 different tech categories, including AI, Robotics, Fintech, and more.

4. Build or Partner? The Answer is “Do Both”

Even though BlackRock develops many AI tools in-house, such as Asimov and a GenAI-powered compliance system, Kfir emphasized that no one can do it alone. “This is the age of Lego... what you should do is find the best pieces and assemble them into your own solution.”

The crucial element, however, is that if you choose to partner, you must invest in building knowledge together. AI is not a magic wand that you can simply hire someone to create for you instantly.

5. Data Centers are Becoming a Strategic National Asset

One of the most significant trends that many may have overlooked is the massive investment in AI infrastructure, particularly hyperscale data centers.

BlackRock has established a $100 billion AIP (AI Infrastructure Partners) fund with Microsoft and NVIDIA to build data centers in the United States. It has also partnered with Temasek to invest another $30 billion in emerging markets, such as those in Asia, Africa, and the Middle East.

AI training consumes an enormous amount of energy, and inference will soon follow. A nation's preparedness in energy and infrastructure will become the key indicator of who will lead in the future.

6. BlackRock's Final Advice: Don't Stand Still

Kfir concluded with advice for investors and organizations of all sizes: "We are living in a historic moment... If you can't keep up, let AI help you keep up."

He recommended that every organization should have its own “Personal AI Agent” to help track news, analyze data, and process information to support decision-making, because the world is no longer waiting for anyone.

What is BlackRock's AI Investment Strategy?

To put it simply, BlackRock's strategy is built on a long-term, foundational vision. Here are the key takeaways from the session:

• Invest long-term in infrastructure: data centers, chips, and energy.
• Look for “Lego Piece” technologies, not just finished applications.
• Develop proprietary analytical tools, such as Asimov.
• Embrace partnerships but commit to investing mutual effort and knowledge.
• Diversify investments globally, with a focus on emerging markets.
• Believe that “AI will become the new infrastructure of the global economy.”

AI is not just a feature; it is an entirely new ecosystem.

Based on the session: “Investing in AI - BlackRock’s Top Investment Strategies for 2026” session at Techsauce Global Summit 2025.