OpenAI is seeking to construct an AI chip empire value greater than AMD, Nvidia and intel mixed — Sam Altman desires as much as $7 trillion says WSJ report

In a bid to reshape the worldwide AI chip business, OpenAI CEO Sam Altman is reportedly in discussions with buyers to lift between $5 trillion to $7 trillion.

Based on The Wall Road Journal, the formidable fundraising effort, if profitable, would surpass the mixed value of AMD, Nvidia, and Intel, and goals to deal with the present shortage of graphic processing items (GPUs) important for working massive language fashions like ChatGPT, Microsoft Copilot, and Google Gemini.

The proposed fundraising sum is indicative of the substantial capital required to ascertain new semiconductor manufacturing capabilities. Altman is alleged to be proposing a partnership between OpenAI, buyers, chip makers, and energy suppliers to collectively finance the development of chip foundries, which will likely be operated by present chip makers. OpenAI is anticipated to be a big buyer of those new factories. 

Assembly demand

Altman’s formidable targets surpass the present international gross sales of the whole semiconductor business, which stands at $527 billion. 

Potential buyers embrace sovereign wealth funds, authorities entities, notably the United Arab Emirates (UAE), SoftBank CEO Masayoshi Son, and representatives from Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest devoted impartial semiconductor foundry.

The transfer is meant to considerably improve the worldwide capability for semiconductor manufacturing, thereby assembly the rising demand for GPUs and different AI-specific chips. 

Nonetheless, the involvement of the UAE, led by Sheikh Tahnoun bin Zayed al Nahyan, a key safety official and chair of quite a few Abu Dhabi sovereign wealth automobiles, might increase geopolitical considerations, notably in relation to the US authorities’s strategic priorities in semiconductor manufacturing and AI growth. 

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The US has been cautious about overseas management over microchip provide as a result of its significance to the digital economic system and nationwide safety. Reflecting this, the Biden administration has been making efforts to bolster home chip manufacturing by subsidies and regulatory scrutiny of overseas investments in vital applied sciences. 

To place the proposed $5 trillion to $7 trillion estimate in context, Ars Technica factors out the White Home just lately introduced a $5 billion funding in R&D to advance US-made semiconductor applied sciences. TSMC has already invested $40 billion right into a US chip plant in Arizona, representing one of many largest overseas investments in US historical past. As of now, it stays unsure whether or not Altman has secured any commitments in direction of his fundraising goal.


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