SEMICONDUCTOR TECHNOLOGY OpenAI CEO seeks funding for network of AI chip factories

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The CEO of ChatGPT founder OpenAI, Sam Altman, is reportedly seeking billions of dollars in funding for a network of AI chip fabs that will help safeguard the supply of AI-ready chips as interest in the industry grows.

Sam Altman, the CEO of OpenAI, the company behind generative AI tool ChatGPT, has reportedly been working to raise billions of dollars from investors for an AI chip venture which will establish a network of factories to manufacture semiconductors.

According to anonymous insiders with knowledge of the plans, Atman is said to have had conversations with several large potential investors in the hopes of raising the vast sums needed to build fabrication plants.

An insufficient AI chip supply

Firms that have held discussions with Altman include Abu Dhabi-based G42, people told Bloomberg last month, and SoftBank Group Corp., some of the people said. The project would involve working with top chip makers and focus on chip manufacturing and design. Altman has previously made known his disdain for the insufficient AI chip supply for his company’s needs. As AI chips become more pervasive, chip supplies will only become more strained, and there might not be enough for widespread deployment.

If the project were to go ahead, it would represent the first time a software company has broken into the chip manufacturing market. Other major technology companies, including Amazon, Google, and Microsoft, have all designed their own AI chips but have outsourced manufacturing to firms like Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker.

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Preventing a future shortage

Building and maintaining chip fabs is an extremely time-consuming and expensive undertaking. A single state-of-the-art plant can require tens of billions of dollars, so creating a network of such facilities would likely take many years. According to those in the know, Altman’s talks with G42 had focused on raising up to US$10 billion, although the discussions' current status is unknown.

In seeking funding for this venture, however, Altman is signaling that the industry needs to act now to ensure that there’s a sufficient supply of AI chips in the future to prevent a shortage like the one that has played out in recent years in the automotive and consumer electronics industries.

Since OpenAI released ChatGPT in late 2022, interest in artificial intelligence applications has skyrocketed among companies and consumers. This has consequently led to a huge growth in demand for the computing power needed to build and run AI programs. According to insiders, Altman had been working on the chips project until he was temporarily ousted as OpenAI’s CEO in November. Upon his return, his efforts resumed.
As for the status of the project, as it currently stands, no further information is available.

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