Tech entrepreneur Sam Altman is reportedly trying to elevate between $5 trillion and $7 trillion to assist fund the manufacturing of microchips to extend availability for AI and machine studying, the Wall Avenue Journal reported on Feb. 8.
The funding can be used to determine factories or fund present chip manufacturing corporations, with OpenAI solely performing as a “vital buyer.” The trouble doesn’t intention to boost cash for Altman’s OpenAI, greatest recognized for its ChatGPT chatbot and GPT giant language fashions (LLMs).
Sources informed the newspaper that the fundraising might largely be funded by debt and will take a number of years to finish.
To finance the mission, Altman reportedly seeks investments from a largely unknown record of traders.
Altman has reportedly mentioned the enterprise with SoftBank, Taiwan Semiconductor Manufacturing (TSMC), and Microsoft, although it’s unclear whether or not these corporations would possibly take part as traders or in one other function. Moreover, sources stated the UAE has been a part of the talks and will develop into a possible investor.
Altman has reportedly met with US Secretary of Commerce Gina Raimondo to debate the matter, as the federal government should approve such a enterprise. Nevertheless, there are issues that the involvement of the UAE may very well be a possible roadblock.
The Journal famous that US lawmakers beforehand urged the Division of Commerce to research Abu Dhabi-based AI agency G42 in January. OpenAI partnered with G42 in October 2023.
Addressing the chip scarcity
The Journal’s report famous that Altman’s fundraising plans “face vital obstacles” and “finally won’t succeed” because the multi-trillion greenback aim is “outlandishly giant.”
In line with the newspaper, Altman’s efforts might nonetheless handle the extensively acknowledged problem of chip shortages. Nevertheless, the report famous that his funding aim is bigger than most nationwide money owed and sovereign wealth funds — it’s also value greater than your entire chip business as of the top of 2023.
World chip gross sales are value $527 billion yearly and are projected to achieve $1 trillion by 2030 on the earliest. In the meantime, gross sales of semiconductor manufacturing gear account for one more $100 billion yearly.
OpenAI has been vocal in regards to the shortages and stated in October that it’s contemplating manufacturing its personal chips in-house to resolve the difficulty. Stories from January urged that these efforts might see OpenAI elevating $100 billion.
It’s unclear whether or not these plans overlap with the trillion-dollar fundraising initiative reported by the Journal. Different companies have additionally began designing their very own chips, together with Meta, Microsoft, Google, and Amazon, albeit with third-party companies dealing with the manufacturing.