In a bid to revolutionize the global production of artificial intelligence chips, OpenAI CEO, Sam Altman, is reportedly seeking approval from the Joe Biden-led administration for his $7 trillion chipmaking dreams.
What Happened: Altman has been in discussions with potential investors and partners across the US, Middle East, and Asia. However, the project’s advancement hinges on approval from the U.S. government.
Altman, a familiar figure in Washington due to his advocacy for AI, is seeking U.S. officials’ support for his plan to significantly increase semiconductor production, reported Bloomberg, citing people familiar with the matter.
The aim is to raise trillions to boost the global capacity for advanced computing chips, preventing a potential shortage that could impede AI’s widespread deployment.
Potential partners for Altman’s venture include major chip manufacturers such as Taiwan Semiconductor Manufacturing Co. TSM, Intel Corp. INTC, and Samsung Electronics Co. SSNLF.
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Altman has already engaged in discussions with Samsung executives and Middle Eastern sovereign wealth funds regarding potential investments.
The ambitious fundraising efforts could prompt a national security review of foreign investment by a committee led by the Treasury Department. It may also encounter hurdles from the Commerce Department’s controls on chip shipments to the Middle East.
Altman is also considering the creation and issuance of equity in a new company, separate from OpenAI. This move could raise antitrust concerns, necessitating US government approval before proceeding.
Why It Matters: This venture follows Altman’s recent discussions with potential investors, including the government of the United Arab Emirates, to secure trillions for a tech initiative aimed at transforming the global semiconductor industry and enhancing AI capacity.
He has also been seeking additional funds for OpenAI as the company seeks to achieve artificial general intelligence (AGI.) Early talks with potential investors were underway in December to infuse funds into OpenAI at a valuation of $100 billion, which is more than a three-fold increase from the previous funding round.
Amid this, Altman has expressed concerns about the potential dangers of AI due to “subtle societal misalignments” and has emphasized the need for a regulatory body akin to the International Atomic Energy Agency (IAEA) to oversee AI’s rapid advancement.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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