OpenAI, the AI research laboratory, has made plans to acquire neuromorphic AI chips from Rain AI for a staggering $51 million. Rain AI, a startup supported by OpenAI CEO Sam Altman, has been developing a neuromorphic processing unit (NPU) that emulates the functions of the human brain. The NPU is expected to offer significantly higher processing power and energy efficiency for AI training compared to the currently used GPUs.
Rain AI has expressed its intentions to sell its chips to major tech giants such as Google, Oracle, Meta, Microsoft, and Amazon. The company is aiming to ship its first hardware to customers as early as October 2024. Neuromorphic chips, unlike traditional computer chips, are specifically designed to simulate neural networks at the hardware level, resulting in real-time processing and reduced power consumption for AI applications.
The letter of intent to purchase $51 million worth of chips was signed by OpenAI in 2019, and it is an example of Altman’s investments crossing paths with his responsibilities as OpenAI’s CEO. Altman has also personally invested over $1 million in Rain AI. Altman is reportedly working on launching his own AI chip startup, as the limited availability and high costs of Nvidia’s AI chips pose a bottleneck in the field of AI development.
In terms of scale, the reported $51 million purchase from OpenAI might seem small when compared to Nvidia’s record-breaking sales figures in Q3 2023. Nvidia’s revenue surged by 206 percent year-over-year, generating a staggering $14.51 billion from datacenter products alone, including GPUs. Microsoft (OpenAI) and Meta emerged as the largest customers, each purchasing 150,000 graphics processing units, while Google, Oracle, Amazon, and Tencent acquired 50,000 GPUs each.
Saudi Arabian oil giant Saudi Aramco’s venture capital company, Prosperity7, was recently compelled by a US government order to divest its stake in Rain AI. The stake was subsequently acquired by Silicon Valley investment firm Grep VC after the transaction underwent scrutiny by the Committee on Foreign Investment in the United States (CFIUS), the main regulatory body overseeing national security implications of transactions.
This move sheds light on the growing scrutiny faced by Middle Eastern asset funds, particularly those with connections to China and AI-related technologies, due to potential national security concerns.
The acquisition of neuromorphic AI chips by OpenAI demonstrates the organization’s commitment to advancing AI technologies and exploring new avenues for research and development. With Rain AI’s chips promising enhanced processing power and energy efficiency, the field of AI is poised for significant advancements, potentially revolutionizing the relationship between humans and computers.
As the world eagerly awaits the arrival of Rain AI’s innovative hardware, the future of AI and its impact on various industries remains a topic of immense interest. The investment made by OpenAI further solidifies the organization’s dedication to pioneering AI advancements and harnessing the potential of neuromorphic computing technologies.
