Sam Altman Seeks to Raise Billions Dollar Funds for New AI Chip Venture

Jan 21, 2024 | 0 comments

Sam Altman to raise fund on new AI chip venture

The project would involve working with top chip manufacturers. According to the Bloomberg report, Sam Altman has had conversations with large potential investors regarding a new AI chips venture. Open AI’s CEO has had discussions about raising money for chip fabrication plants with Japan’s SoftBank Group and Abu Dhabi-based company G42, but the talks are still in an early stage and nothing has been officially announced as the current status of the discussions is unclear.

Why is there a need for AI chips?

AI chips help to improve performance and help to run complex AI systems. Running large computational AI models like ChatGPT or DALL-E requires a lot of chips. Due to this, there is always a demand for AI chips in the market. This is the reason why Nvidia’s H100 GPUs are highly popular. Sam Altman feels that if AI is going to become as powerful as we think it is going to become, then there will be a shortage of AI chips in the near future. This will limit the worldwide use of artificial intelligence, so industry needs to act fast to ensure there is enough supply of AI chips by the end of the decade.

Cost of Manufacturing AI Chips

The construction of AI chips costs a lot of money and time because the construction of a single state-of-the-art fabrication plant requires tens of billions of dollars, and creating a global network for them would take several years. Along with money, large amounts of natural resources are also required to manufacture these chips. The Bloomberg report mentioned that Altman’s previous partnership with G42 in October last year focused on raising eight to ten billion dollars.

Potential Partners for the New Venture

According to the report, OpenAI will potentially partner with top leaders in the chip fabrication market, including Intel Corp., Taiwan Semiconductor Manufacturing Co., and Samsung Electronics Co.

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