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Sam Altman, the chief executive of OpenAI, has commenced discussions with investors, including the United Arab Emirates, to secure funds for a technology initiative to bolster the world's chip-building capacity.
The initiative also seeks to expand capabilities to power artificial intelligence (AI) applications, among other objectives. The Wall Street Journal reported this development on February 8.
Ambitious Fundraising Goals and Project Scope
According to sources familiar with the matter cited in the report, the project could necessitate raising between $5 trillion to $7 trillion. The funds are intended to address various constraints hindering OpenAI's growth, including the shortage of AI chips crucial for training large language models such as ChatGPT.
OpenAI and its primary investor, Microsoft, have yet to respond to Reuters' requests for comment on these fundraising efforts.
The Semiconductor Industry Association has projected a 13.1% increase in global chip sales to reach $595.3 billion by 2024. This comes after a notable 8% decline in sales in the previous year.
Challenges and Opportunities in Corporate Fundraising
The reported amounts discussed by Altman are notably substantial in corporate fundraising. Investors have valued OpenAI at over $80 billion, reflecting the significant potential perceived in the organization's initiatives.
According to the Wall Street Journal, as part of the ongoing discussions, Altman advocates for a collaborative partnership involving OpenAI, investors, chip manufacturers, and power providers.
According to Straits Times, the proposed alliance would collectively contribute funds to establish chip foundries, which chipmakers would then operate. Although discussions are still in the early stages, much of this endeavor's funding could be raised through debt financing.
Altman's ambitious fundraising plans underscore the critical role of technology initiatives in addressing global challenges and advancing innovation in AI and chip manufacturing. As these discussions progress, stakeholders will closely monitor developments in the evolving tech investment and collaboration landscape.
Photo: Andrew Neel/Unsplash
