``` The AI boom is brewing one of the top five deals of the year, as BlackRock nears a $40 billion acquisition of a data center company. ```

``` The AI boom is brewing one of the top five deals of the year, as BlackRock nears a $40 billion acquisition of a data center company. ```

```The ongoing AI investment boom is brewing one of the year's top blockbuster deals: BlackRock is reportedly close to finalizing the acquisition of a company that provides data center solutions.

On Friday, October 3, Eastern Time, media sources reported that BlackRock's infrastructure investment fund Global Infrastructure Partners (GIP) is in advanced talks to acquire data center company Aligned Data Centers, with the deal valuing Aligned at around $40 billion.

The media said that GIP and Aligned could announce the deal agreement within the next few days. Mubadala's AI investment company MGX, which is owned by the UAE sovereign wealth fund, will participate in the deal as an independent investor.

If the news is true, media estimates indicate that this BlackRock acquisition would rank among the top five global transactions of the year.

This acquisition targets the main beneficiaries of the AI spending boom, reflecting investors’ fervor for artificial intelligence infrastructure. Earlier this week, it was reported that OpenAI achieved a $500 billion valuation in an employee secondary share sale, surpassing Elon Musk's SpaceX as the world's most valuable startup. Since OpenAI launched ChatGPT, investors have flocked into the AI sector seeking opportunities, pushing up the whole industry’s valuation.

From AI chip leader Nvidia to AI model stars OpenAI and Anthropic, and to various related equipment suppliers, the entire AI industry chain is attracting huge capital inflows. However, some market observers are concerned that, before AI services gain true popularity and meaningful revenue, the current valuation levels may carry risks of a bubble.

Data Center Giants Become Acquisition Targets

Headquartered in Plano, Texas, Aligned Data Centers operates in the US and South America, managing 50 campuses and 78 data centers, including ongoing and future development projects. The company is owned by Macquarie and, in January, received more than $12 billion in equity and debt commitments from investors including Macquarie Asset Management funds.

On Friday, sources said GIP has not yet reached a final agreement on the acquisition of Aligned Data Centers; some details may change, and the talks could fall through. BlackRock, Aligned and its parent Macquarie Asset Management, and Mubadala all declined to comment on the news.

In addition to Aligned, GIP is also eyeing other large acquisition opportunities, including a possible acquisition of power company AES Corp., which is expected to benefit from surging power demand driven by AI applications. Including debt, AES has an enterprise value of about $38 billion.

AI Unicorn Valuations Soar

OpenAI’s recent share sale highlights the astonishing surge among AI unicorns in this investment frenzy.

This Thursday, media outlets learned that former and current OpenAI employees sold about $6.6 billion in stock to investors including Thrive Capital, SoftBank, Dragoneer Investment Group, Abu Dhabi's MGX, and T. Rowe Price. The deal values OpenAI at $500 billion.

This means that in just over two months, OpenAI’s valuation has jumped by two-thirds. According to a report in early August, OpenAI completed an $8.3 billion new funding round that put its valuation at $300 billion.

OpenAI's soaring valuation underlines the investment frenzy surrounding leading AI technology companies. While not yet profitable, OpenAI is driving an infrastructure-building boom by signing large-scale cooperation agreements with companies such as Oracle and SK Hynix.

On Wednesday, South Korea’s memory giants Samsung and SK Hynix each announced chip supply agreements with OpenAI, further fueling the AI frenzy in financial markets. The two companies’ share prices closed up by 3.5% and 9.9%, respectively, on Thursday.

An MGX spokesperson said on Thursday: "We are pleased to be a core partner of OpenAI and to continue building strong relationships as a significant investor through multiple rounds of fundraising."

Major AI Investment Deals Emerge Frequently

Major investment deals in the AI field have emerged in rapid succession recently.

About a month ago, Meta secured $29 billion in funding for a data center in Louisiana, USA.

On September 22, Nvidia announced it would invest up to $100 billion in OpenAI to help it build large-scale data centers equipped with Nvidia chips. Two days later, Oracle issued $18 billion in bonds to build infrastructure for OpenAI, marking the second-largest investment-grade bond issuance in the U.S. this year.

Media reported in August that MGX is seeking to raise as much as $25 billion for its AI infrastructure projects.

Last year, BlackRock acquired GIP for about $12.5 billion. After news of Friday’s acquisition broke, BlackRock's stock price edged higher, marking two consecutive gains. As of Thursday’s close, its stock price was up about 13.2% so far this year, with a market capitalization of about $189 billion.

Based on a $40 billion deal size according to media estimates, the GIP acquisition of Aligned would rank among the world’s five largest deals this year. GIP already co-owns, with KKR, Dallas-based data center company CyrusOne; the two firms took CyrusOne private in 2021 at a valuation of about $15 billion.

Risk Disclaimer and Exemption ClauseThe market involves risks, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account individual users' specific investment objectives, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are appropriate to their own circumstances. Investing based on this is at your own risk. ```