OpenAI CEO wants to raise $7 trillion to solve chip shortage problem. This infusion of capital aims to support the production of microchips to improve the accessibility of artificial intelligence and machine learning technologies.

The proposed funding will be allocated to the creation of new microchip production facilities or to support existing companies in the sector. Notably, Altman's enterprise, OpenAI, will function primarily as an important user in this endeavor rather than a beneficiary of the funds.

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Reports suggest that a significant portion of the funding could be secured through debt financing and could result in a multi-year fundraising process. As for potential investors, Altman has reportedly been in discussions with various organizations, including SoftBank, Taiwan Semiconductor Manufacturing (TSMC) and Microsoft. However, the extent of their involvement, whether as investors or in an alternative capacity, remains uncertain. In addition, the sources indicated that the UAE has also been approached and could potentially participate as investors.

The US plans to invest $5 billion in chip development

Altman's discussions on the matter reportedly included meetings with US Commerce Secretary Gina Raimondo, emphasizing the need for government approval due to the scale of the proposed venture. However, concerns have been raised about the UAE's involvement, which could lead to regulatory challenges.

The chips learned to teach themselves

Addressing the global chip shortage is a major goal of Altman's fundraising initiative. Although the venture promises to mitigate this problem, its ambitious financial goal exceeds most national debt and sovereign wealth funds. It also significantly exceeds the total value of the chip industry by the end of 2023.

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