Report: Altman of OpenAI seeks chip, AI funding

Sam Altman’s fundraising efforts target addressing OpenAI’s growth constraints, such as the scarcity of AI chips needed for training large language models

OpenAI CEO Sam Altman is in discussions with investors, including the UAE, to secure funding for a technology initiative aimed at enhancing global chip manufacturing capabilities and advancing AI capabilities, among other objectives, as reported by the Wall Street Journal on Thursday.

According to sources familiar with the matter cited in the report, the project might entail raising as much as $5 trillion to $7 trillion.

OpenAI, along with its primary investor Microsoft, did not immediately respond to Reuters’ requests for comment.

Altman’s fundraising strategy is geared towards addressing obstacles to OpenAI’s expansion, such as the shortage of AI chips needed to train large language models powering systems like ChatGPT, according to the WSJ.

The Semiconductor Industry Association (SIA) predicts a 13.1% increase in global chip sales to $595.3 billion this year, following a roughly 8% decline in sales in 2023.

The figures Altman has mentioned are extraordinarily large in the realm of corporate fundraising, according to the report.

Investors have valued OpenAI at over $80 billion.

In these discussions, Altman is proposing a collaboration involving OpenAI, investors, chip manufacturers, and energy suppliers. This coalition would contribute funds to establish chip foundries, which would subsequently be operated by chip makers. The report notes that a significant portion of the funding could come from debt, and the discussions are still in the early phases.