Altman Eyes G42 to Secure Funds for AI Chip Factories
Altman aims to utilize the funds to establish a network of semiconductor factories, known colloquially as fabs.
OpenAI Chief Executive Officer Sam Altman is actively seeking to raise billions of dollars from global investors for an expansive chip venture.[1]
OpenAI is in talks with Abu Dhabi-based AI and cloud computing company G42 and SoftBank Group Corp. Altman aims to utilize the funds to establish a network of semiconductor factories, known colloquially as fabs. Altman has engaged in discussions with several major potential investors, pursuing the substantial sums required for the development of chip fabrication plants.
The project entails collaboration with top-tier chip manufacturers, and the network of fabs is intended to have a global footprint. A comprehensive list partners and funders has not yet been finalized.
Since the release of OpenAI's ChatGPT over a year ago, interest in AI applications has surged, driving significant demand for the computing power and processors essential for building and running these programs. Altman has consistently emphasized the current shortage of chips to meet the demands of his company, noting that the industry needs to take immediate action to ensure an adequate chip supply by the end of the decade.
In December, OpenAI announced plans to raise $8-10 billion from G42, putting OpenAI's valuation at $100 billion. In October of last year, G42 inked a partnership with OpenAI to deliver AI solutions to the UAE and the region. The partnership focuses on leveraging OpenAI's generative AI models in areas like financial services, energy, healthcare, and public services to accelerate solution delivery.