Sam Altman Plans To Raise Billions of Dollars For AI Chip Venture By CIOTechOutlook Team

Sam Altman Plans To Raise Billions of Dollars For AI Chip Venture

CIOTechOutlook Team | Monday, 22 January 2024, 03:03 IST

Sam Altman, CEO of OpenAI, has been in talks with several potential investors as he looks to raise billions of dollars to start the chip company. The 38-year-old entrepreneur is said to be planning to build a network of factories to produce semiconductors.

Notably, building a state-of-the-art manufacturing facility would require tens of billions of dollars in funding, and creating a network of such facilities will take years, as per livemint.

Among the major players who have talked about financing Altman's new venture are Sheikh Tahnoon bin Zayed al-Nahyan of the United Arab Emirates, Taiwan Semiconductor Manufacturing Co (TSMC) and Softbank.

Sheikh Tahnoon is primarily the brother of UAE President Sheikh Mohammed bin Zayed al-Nahyan and also serves as national security adviser. Tahoon also controls some of the country's most powerful investment funds..

It is not yet clear whether the new company will be a subsidiary of OpenAI or a separate company. However, the report cites two people with knowledge of the matter who say OpenAI is the new company's first customer, according to the sources.

OpenAI explored the possibility of producing its own chipset and even evaluated a possible acquisition target..

OpenAI hasn't finished the switch yet, but the company has been discussing various options to address the shortage of AI chips. OpenAI is also said to be focused on diversifying its suppliers beyond Nvidia and working with other chipmakers.