Sam Altman, CEO of OpenAI, is actively seeking to raise billions of dollars to establish a global network of Artificial Intelligence (AI) chip factories. This ambitious venture aims to manufacture semiconductors, essential for AI applications. Bloomberg reports that Altman has engaged in preliminary discussions with major potential investors, including Abu Dhabi-based G42 and Japan’s SoftBank Group, though these talks are still in their early stages.
OpenAI’s Bold Leap into Chip Manufacturing: Seeking Billions for Global AI Chip Fabs Network
This move is driven by Altman’s belief that the growing AI industry will soon face a shortage of necessary chips. Current production forecasts for AI-related semiconductors are not meeting the anticipated demand. Altman’s concern is that without sufficient chip supply, the widespread deployment of AI could be hindered.
OpenAI, known for developing ChatGPT, has seen its annual revenue reach $1.6 billion in 2023. The company is now looking to raise new funding at an estimated valuation of around $100 billion. Altman’s venture into chip manufacturing diverges from the strategy of other major players in the AI industry, like Google, Amazon, and Microsoft (OpenAI’s largest investor), who typically design their own chips and outsource the manufacturing.
The construction and maintenance of chip fabrication plants (fabs) are notably costly and resource-intensive. Setting up a single state-of-the-art fabrication plant can require tens of billions of dollars, and creating a network of such facilities would take years. Altman’s discussions with G42 alone have been about raising between $8 billion and $10 billion.
This venture is crucial for OpenAI’s future growth, as Altman has noted the company’s increasing need for chips. Major chip fabrication market leaders like Intel Corp., Taiwan Semiconductor Manufacturing Co., and Samsung Electronics Co. are potential partners in this endeavor.
The plans for these fabs come after Altman’s brief departure and subsequent return as CEO of OpenAI. He has also approached Microsoft regarding this plan, with the software giant showing interest. However, the specifics of these partnerships and funding are still not fully determined, as the talks are ongoing.
Back in September last year, OpenAI also initiated a collaborative project with former Apple designer Jony Ive seeking up to $1 billion in Softbank funding for their AI Device Project, aiming to create an innovative consumer device focused on OpenAI technology. The project, still in its early stages, aimed to revolutionize computer interactions and potentially challenge smartphones’ dominance in the consumer electronics market.
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(Source)
