OpenAI’s Altman in talks to raise funds for chips, AI initiative
OpenAI CEO Sam Altman is engaging in discussions with investors, including the UAE, to secure funds for a groundbreaking technology initiative aimed at bolstering chip-building capacity worldwide and enhancing artificial intelligence capabilities, among other objectives, according to The Wall Street Journal (WSJ). The project is anticipated to necessitate a formidable sum ranging from $5 trillion to $7 trillion, as reported by sources familiar with the matter.
OpenAI, in conjunction with its major investor Microsoft, has not yet responded to Reuters’ request for comment on these fundraising efforts spearheaded by Altman. The primary objective behind these plans is to overcome the obstacles impeding OpenAI’s growth, which include the limited availability of AI chips that are critical in training large language models like ChatGPT, as disclosed by the WSJ.
The Semiconductor Industry Association has projected a significant upsurge of 13.1% in global chip sales, reaching $595.3 billion this year, following a decline of approximately 8% in 2023.
Considering the scale of the amounts under discussion, Altman’s fundraising aspirations exceed the norms of corporate fundraising, highlighting the magnitude of the endeavor. OpenAI’s valuation currently stands at over $80 billion.
As part of the ongoing talks, Altman is proposing a partnership between OpenAI, chipmakers, investors, and power providers. Together, they would invest the required capital to construct chip foundries, which would then be operated by the chipmakers themselves. The report additionally reveals that a large portion of the financing could be secured through debt, and the discussions are still in the preliminary stages.
By adhering to these guidelines, Altman aims to source the necessary funds and overcome the hurdles hindering OpenAI’s expansion. This includes addressing the scarcity of AI chips, which is indispensable to the development of advanced language models such as ChatGPT.
The article provides a balanced view, offering insight into the projected growth of the semiconductor industry, as well as the ambitious nature of OpenAI’s fundraising endeavors. As the discussions progress, Altman’s proposal for a partnership between various stakeholders stands to provide a viable solution to the challenges faced by OpenAI.
