OpenAI CEO Sam Altman seeks as much as $7 trillion for new AI chip venture: WSJ

Sam Altman, CEO of OpenAI, on the Hope Global Forums annual assembly in Atlanta on Dec. 11, 2023.

Dustin Chambers | Bloomberg | Getty Images

OpenAI CEO Sam Altman is looking for trillions of {dollars} in investments to overtake the worldwide semiconductor business, The Wall Street Journal reported.

Altman has lengthy talked of the availability and demand drawback with AI chips — many AI giants need them, however there aren’t sufficient to go round — and the way it locations limitations on OpenAI’s development. He’s contemplating a venture that might enhance world chip-building capability, in accordance with a Thursday night report within the Wall Street Journal, and is reportedly in talks with completely different buyers, together with the federal government of the United Arab Emirates.

Altman may wish to boost between $5 trillion and $7 trillion for the endeavor, The Wall Street Journal reported, citing one supply. CNBC couldn’t verify the quantity. OpenAI didn’t reply to a request for remark.

On Wednesday, Altman posted on X that OpenAI believes “the world wants extra ai infrastructure–fab capability, vitality, datacenters, etc–than individuals are at present planning to construct.” He added that “constructing massive-scale AI infrastructure, and a resilient provide chain, is essential to financial competitiveness” and that OpenAI would attempt to assist.

The information follows some controversy over a few of Altman’s earlier chip endeavors and investments.

Just earlier than Altman’s brief ouster as CEO of OpenAI, he was reportedly seeking billions for a new and not-yet-formed chip enterprise code-named “Tigris” to finally compete with Nvidia, touring to the Middle East to boost cash from buyers.

In 2018, Altman personally invested in an AI chip startup known as Rain Neuromorphics, primarily based close to OpenAI’s San Francisco headquarters, and in 2019, OpenAI signed a letter of intent to spend $51 million on Rain’s chips. In December, the U.S. compelled a Saudi Aramco-backed enterprise capital agency to promote its shares in Rain.

Nvidia has been the large moneymaker in the course of the previous 12 months’s generative AI increase, with its market cap greater than tripling in 2023. The firm’s graphics processing models, or GPUs, energy the massive language fashions created by OpenAI, Alphabet, Meta and a rising crop of heavily-funded startups all battling for a slice of the generative AI pie.

Nvidia at present controls about 80% of that AI chip market with a present market cap of about $1.72 trillion, not removed from overtaking tech giants like Amazon and Alphabet in market cap. Altman possible seeks to alter that.

In November 2022, when OpenAI’s ChatGPT first launched, the corporate had a restricted variety of GPUs and capability, and largely considered itself as an organization that builds instruments for builders and companies, OpenAI COO Brad Lightcap informed CNBC final November. When it got here to releasing its now-viral ChatGPT bot, Lightcap recalled that Altman was an enormous proponent of “simply making an attempt it,” his thesis being that there was one thing necessary and private about text-based interplay with the fashions.

The transfer paid off. ChatGPT broke information on the time as the fastest-growing client app in historical past, and now has greater than 100 million weekly energetic customers, together with more than 92% of Fortune 500 firms utilizing the platform, in accordance with OpenAI. 

Last November, OpenAI’s board ousted Altman, prompting resignations – or threats of resignations – together with an open letter signed by just about all of OpenAI’s workers, and uproar from buyers, together with Microsoft. Within per week, Altman was back at the company. Since then, OpenAI has announced a new board, together with former Salesforce co-CEO Bret Taylor, former Treasury Secretary Larry Summers and Quora CEO Adam D’Angelo. Microsoft obtained a nonvoting board observer place, and the corporate nonetheless plans so as to add extra seats.

Read more at the WSJ

Source link

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *