Sam Altman, the CEO of OpenAI, is in the process of raising $5-7 trillion to build new chips for the future of AI. According to The Wall Street Journal, Altman is exploring the possibility of raising money in the United Arab Emirates in order to fund this ambitious project. This amount of money is significantly more than what the US spent on building highways.
OpenAI currently relies on Microsoft for its computing needs and has outgrown their current silicon chip factories. To meet the growing demand for computing power, Altman plans to build new chip factories at a cost of $5-7 trillion. As part of this venture, he is proposing a partnership between OpenAI, various investors, chip manufacturers, and power providers to fund the construction of these factories. OpenAI would commit to being a significant customer of the new factories.
The majority of funding may come from debt, and this project is still in its early stages and may take years to come to fruition. While there is no doubt that we need more silicon chip factories, Altman’s plan to raise such an enormous sum for their construction is incredibly ambitious and not something that a relatively new company typically attempts to raise. President Joe Biden recently signed the CHIPS Act which provides $52 billion in subsidies to build chip factories in the US. However, despite these efforts, it seems that promised jobs from this project are falling short already. Nevertheless, Altman’s plan is an ambitious effort to meet our growing need for more chip factories but remains a daunting challenge due to its enormous cost.