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  • Voltaire Staff

OpenAI CEO Sam Altman raising funds to set up chip factories to power AI boom



 

OpenAI CEO Sam Altman is working to shore up billions of dollars to establish a global network of semiconductor manufacturing units to power his firm's AI boom.


According to Bloomberg, the purpose of these factories is to contribute to the production of essential technology components used in everyday consumer goods and artificial intelligence products. The project involves collaboration with top chip manufacturers.


Altman is learned to be parleying with companies like SoftBank Group from Japan and G42 from Abu Dhabi, a previous partner of ChatGPT-maker OpenAI,  for raising $8 billion to $10 billion. The full list of partners and funders is not yet finalised.


There isn’t clarity about where the chip factories will be. At present, the US makes about 12 per cent of the world's chips within the country and often depends on outsourcing to save costs.


Other potential partners include Intel, Taiwan Semiconductor Manufacturing Co, and Samsung Electronics, according to reports.

Manufacturing chips is expensive and requires significant natural resources, along with billions of dollars in funding.


Semiconductor chip production is costly due to the intricate nanoscale processes requiring precision machinery and cleanroom facilities.

Continuous research and development for innovative designs, high-quality materials, and energy-intensive fabrication contribute to expenses.



The global supply chain's vulnerability and dependence on costly, cutting-edge technologies further inflate costs.


The US invested billions, with companies like Intel and Qualcomm committing nearly $200 billion for chip projects from 2020 to 2023.


US President Joe Biden signed the CHIPS and Science Act in 2022, allocating $280 billion for semiconductor efforts. Concerns led to the US restricting chip exports to China, impacting their access to crucial resources for chip production.

 

 

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