Tech entrepreneur Sam Altman is reportedly trying to increase between $5 trillion and $7 trillion to assist fund the manufacturing of microchips to extend availability for AI and machine studying, the Wall Road Journal reported on Feb. 8.
The funding can be used to ascertain factories or fund present chip manufacturing corporations, with OpenAI solely appearing as a “vital buyer.” The trouble doesn’t intention to lift cash for Altman’s OpenAI, finest identified for its ChatGPT chatbot and GPT giant language fashions (LLMs).
Sources instructed the newspaper that the fundraising may largely be funded by debt and should take a number of years to finish.
To finance the challenge, Altman reportedly seeks investments from a largely unknown checklist 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 may take part as traders or in one other function. Moreover, sources mentioned the UAE has been a part of the talks and will grow to be 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. Nonetheless, there are issues that the involvement of the UAE might 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 may not succeed” because the multi-trillion greenback purpose is “outlandishly giant.”
In accordance with the newspaper, Altman’s efforts may however handle the broadly acknowledged subject of chip shortages. Nonetheless, the report famous that his funding purpose is bigger than most nationwide money owed and sovereign wealth funds — additionally it is value greater than all the chip trade as of the tip of 2023.
World chip gross sales are value $527 billion yearly and are projected to succeed in $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 concerning the shortages and mentioned in October that it’s contemplating manufacturing its personal chips in-house to resolve the difficulty. Experiences from January advised that these efforts may 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 corporations have additionally began designing their very own chips, together with Meta, Microsoft, Google, and Amazon, albeit with third-party corporations dealing with the manufacturing.