Brookfield reportedly launching cloud business for AI chip leasing

Investing.com -- Brookfield is launching a cloud business to lease chips in data centers directly to AI developers, according to a report from The Information on Wednesday.

The new cloud business will be connected to a $10 billion AI fund that Brookfield is establishing, along with a cloud company called Radiant that the firm will operate.

According to the report, which cited a person with direct knowledge of the firm’s strategy, Radiant will have priority to lease any data centers developed under the fund. The fund is currently developing data center projects in France, Qatar, and Sweden.

In November, Brookfield launched a $100 billion AI infrastructure program, anchored by the Brookfield Artificial Intelligence Infrastructure Fund. Half of the fund’s $10 billion commitments target has already been fulfilled by a group of institutional and industry partners, including Nvidia and the Kuwait Investment Authority.

The move would give Brookfield end-to-end control of the AI value chain. With its energy and real estate-heavy portfolio, adding a cloud business would allow the company to control inputs of the AI value chain in a way that pure-play cloud providers cannot.

This development could put additional pressure on traditional cloud giants such as Amazon, Microsoft, and Oracle, which are already facing challenges to generate returns on their capital expenditures. These companies may need to further optimize their energy logistics and capital efficiency.

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