Getting your Trinity Audio player ready...
OpenAI CEO Sam Altman is reportedly in discussions with investors to raise trillions of dollars in funding for enhancing the semiconductor industry and the chips that power high-profile AI models such as ChatGPT, the Wall Street Journal reported on Thursday.
According to the report, one of the discussions involved the United Arab Emirates (UAE) government. An unnamed source said Altman’s project could need between five and seven trillion dollars, reported WSJ.
OpenAI’s CEO, Sam Altman, is reportedly engaging in discussions with investors, including the UAE, to secure funding for a technology initiative aimed at bolstering global chip production capacity and expanding capabilities for powering artificial intelligence (AI), as reported by the Wall Street Journal on Thursday.
The project is estimated to necessitate a fundraising effort ranging from $5 trillion to $7 trillion, according to sources familiar with the matter cited in the report.
OpenAI and its primary investor, Microsoft, have not yet responded to Reuters’ requests for comment. Altman’s fundraising endeavors are designed to address challenges to OpenAI’s expansion, including the shortage of AI chips essential for training large language models like those utilized in systems such as ChatGPT, as reported by the WSJ.
The Semiconductor Industry Association (SIA) has predicted a 13.1% increase in global chip sales, reaching $595.3 billion this year, in contrast to a roughly 8% sales decline in 2023.
The reported amounts discussed by Altman are notably substantial in the realm of corporate fundraising. Investors have valued OpenAI at over $80 billion.
As part of the ongoing discussions, Altman is proposing a collaborative effort between OpenAI, investors, chip manufacturers, and power providers. This alliance would contribute funds to establish chip foundries, subsequently operated by chip manufacturers. The report suggests that much of the initiative could be financed through debt, and the discussions are still in the early stages.