Sam Altman seeks to raise billions for network of AI chip factories: Report

OpenAI CEO Sam Altman plans to use the billions of dollars he is trying to raise for a chip venture for setting up a network of semiconductor factories, Bloomberg News reported.

OpenAI CEO Sam Altman plans to use the billions of dollars he is trying to raise for a chip venture for setting up a network of factories that will manufacture semiconductors, Bloomberg News reported on Friday, citing people with knowledge of the plans.

Altman has had talks with several large potential investors in the hopes of raising the vast sums needed for chip fabrication plants, colloquially known as fabs, the report said.

The project would involve working with top chip manufacturers and the network of fabs would be global in scope, according to the report.

Manufacturing chips is expensive. They also require copious amounts of natural resources, in addition to the billions of dollars in funding. Costs have been rising over the years as technology advances to make chips used in artificial intelligence applications.

(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)

Abu Dhabi-based G42 and Japan's SoftBank Group are among the firms that have held discussions with the OpenAI boss, but the talks are still early and a full list of involved partners and funders has not been established, the report said.

The talks with G42, with which the ChatGPT maker partnered in October last year, alone had focused on raising $8 billion to $10 billion, although the current status of the discussions is unclear, according to the report.