OpenAI CEO Sam Altman seeks as much as $7 trillion for new AI chip project
OpenAI CEO Sam Altman seeks as much as $7 trillion for new AI chip project, per WSJ.
According to a report from The Wall Street Journal, Sam Altman, the CEO of OpenAI, is in search of trillions of dollars in investments to revolutionize the global semiconductor industry.
Altman has consistently highlighted the issue of supply and demand concerning AI chips—many leading AI companies demand them, yet there is a shortage hindering OpenAI's growth. The Wall Street Journal states that he is contemplating a project aimed at expanding global chip manufacturing capacity. Altman is said to be in discussions with various investors, including the government of the United Arab Emirates.
The estimated funding required for this ambitious initiative ranges between $5 trillion and $7 trillion, as reported by The Wall Street Journal, citing one source. However, CNBC could not verify this figure. OpenAI did not provide a comment when requested.
On Wednesday, Altman shared on X his belief that "the world needs more AI infrastructure—fab capacity, energy, data centers, etc.—than people are currently planning to build." He emphasized the importance of establishing massive-scale AI infrastructure and a resilient supply chain for maintaining economic competitiveness, with OpenAI committed to contributing to this cause.
This development follows previous controversies surrounding Altman's involvement in chip ventures and investments. Before his temporary removal as CEO of OpenAI, reports emerged that he was seeking funding in the billions for a new chip venture codenamed "Tigris," aimed at challenging Nvidia's dominance. In 2018, Altman personally invested in Rain Neuromorphics, an AI chip startup near OpenAI's headquarters, and in 2019, OpenAI expressed intent to invest $51 million in Rain's chips. However, in December, U.S. authorities compelled a Saudi Aramco-backed venture capital firm to divest its shares in Rain.
Nvidia has experienced significant financial success amid the recent surge in generative AI, with its market capitalization more than tripling in 2023. The company's GPUs power large language models developed by OpenAI, Alphabet, Meta, and other well-funded startups competing in the generative AI space. Currently, Nvidia holds about 80% of the AI chip market, with a market capitalization of approximately $1.72 trillion, positioning it close to surpassing tech giants like Amazon and Alphabet. Altman appears to aim at altering this landscape.
OpenAI's journey with ChatGPT, which launched in November 2022, began with limited GPUs and capacity, focusing mainly on providing tools for developers and businesses, as described by OpenAI COO Brad Lightcap in a CNBC interview last November. Altman's advocacy for "just trying it" regarding the release of ChatGPT proved successful. The bot became the fastest-growing consumer app in history at the time, boasting over 100 million weekly active users and adoption by more than 92% of Fortune 500 companies, according to OpenAI.
In November, Altman faced a temporary ousting from OpenAI's board, leading to resignations and threats of resignations, including an open letter signed by nearly all employees and concerns from investors like Microsoft. However, Altman returned within a week. OpenAI has since announced a revamped board, including figures like former Salesforce co-CEO Bret Taylor, former Treasury Secretary Larry Summers, and Quora CEO Adam D’Angelo. Microsoft secured a nonvoting board observer position, with plans for further expansions in the board composition.