Sam Altman, CEO of OpenAI, is reportedly seeking an investment ranging between $5 trillion and $7 trillion. This investment aims to address the critical shortage of AI chips, a challenge that has become a major bottleneck for the growth of AI technologies, including those developed by OpenAI.
According to a report by The Wall Street Journal, Altman’s vision involves a massive expansion of the global capacity for building chips. This initiative is not just about enhancing OpenAI’s capabilities but is seen as a crucial step towards meeting the increasing demand for AI chips across the industry. The shortage of these chips has been a growing concern, with many AI companies vying for a limited supply, thus hampering growth and innovation.
Altman’s project is in the early stages of seeking financial backing, with discussions reportedly taking place with various investors, including the government of the United Arab Emirates. The exact amount needed for the project is still under consideration, but the figures cited by The Wall Street Journal highlight the scale and ambition of Altman’s plan.
The need for such an investment was further emphasized by Altman in a recent post on X, where he stated, “the world needs more AI infrastructure–fab capacity, energy, datacenters, etc–than people are currently planning to build.” He underscored the importance of massive-scale AI infrastructure and a resilient supply chain for maintaining economic competitiveness.
This initiative comes on the heels of some controversy surrounding Altman’s previous investments in the chip sector. Before his brief removal as CEO of OpenAI, Altman was exploring funding for a new chip venture, aiming to compete with Nvidia, a leader in the AI chip market. His investment in Rain Neuromorphics and OpenAI’s intent to purchase chips from Rain have been part of his ongoing efforts to advance AI hardware technology.
Nvidia has emerged as a significant beneficiary of the generative AI boom over the past year, with its market cap more than tripling. The company’s dominance in the AI chip market, controlling about 80% of it, underscores the urgency of Altman’s project to diversify and expand the market.
Following a tumultuous period that saw Altman briefly ousted from his position, OpenAI has stabilized under his leadership, with a renewed focus on its ambitious goals. The company has announced a new board, signaling a strong commitment to its vision for the future of AI technology.
