Sam Altman in talks to fundraise for chips, AI initiative: WSJ

As per projections by SIA, global chip sales are expected to surge by 13.1% to $595.3 billion this year
The image shows OpenAIs CEO Sam Altman. — Reuters

The image shows OpenAI's CEO Sam Altman. — Reuters

OpenAI CEO Sam Altman is in discussions with investors, including those from the UAE, to secure funding for a technological initiative. 

Reuters, while citing a Wall Street Journal report published on Thursday, said Altman aims to enhance global chip manufacturing capacity and enhance capabilities to support various applications, including AI. 

The project may require the funds to be between $5 trillion and $7 trillion, as per sources familiar with the situation cited in the WSJ report.

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Altman's efforts to raise funds aim to tackle obstacles preventing OpenAI's growth, notably the shortage of artificial intelligence (AI) chips crucial for training expansive language models such as ChatGPT, as outlined in the WSJ report.

According to projections by the Semiconductor Industry Association (SIA), global chip sales are expected to surge by 13.1% to $595.3 billion this year, a notable increase compared to the approximately 8% decline observed in sales last year.

As per the report, the figures Altman has mentioned are exceptionally substantial compared to typical corporate fundraising endeavors. Meanhwhile, OpenAI has been valued at over $80 billion by the investors. In the discussions,

Altman is proposing a collaboration involving OpenAI, investors, chip manufacturers, and energy providers. This collective effort would involve financing the development of chip foundries, to be operated by chip makers. The report suggests that a significant portion of the funding might come from borrowing, and it emphasises that these discussions are still in their early stages.