According to a report from the Wall Street Journal on Thursday, Sam Altman, the head of OpenAI, is seeking to secure trillions of dollars in funding to overhaul the global semiconductor industry. He has engaged in discussions with potential investors, including the government of the United Arab Emirates (UAE).
Altman aims to address some of the significant challenges confronting the rapidly expanding artificial intelligence sector, such as the scarcity of costly computer chips essential for powering large-language models like OpenAI’s ChatGPT.
Presently, the global chip industry is dominated by a handful of major players, notably Taiwan Semiconductor Manufacturing Company (TSMC) and the US-based NVIDIA.
While various countries have unveiled initiatives to bolster domestic chip production, the financial backing they offer is dwarfed by the substantial sums Altman has reportedly been exploring with potential investors. The Wall Street Journal approximates the total cost of realizing Altman’s vision could reach as high as $7 trillion, surpassing the combined market value of the world’s two largest public companies, Apple and Microsoft.
An OpenAI spokesperson informed the Journal that the company has engaged in “productive discussions about increasing global infrastructure and supply chains for chips, energy, and data centers.” They reiterated their commitment to keeping the US government informed due to national priorities.
Altman has conducted meetings with senior government officials from the UAE, as well as Masayoshi Son, the CEO of SoftBank, and representatives from TSMC. Reports from Bloomberg and the Financial Times have also covered some of Altman’s recent discussions.
Altman has proposed constructing numerous chip-fabrication facilities over the next few years, funded by investors from the Middle East, and subsequently contracting TSMC to build and manage them.
Despite his previous setbacks, including a brief dismissal from his position at OpenAI in November, Altman continues to pursue ambitious plans following the success of ChatGPT. He was reinstated shortly afterward due to pressure from employees and investors.
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