HomeMarket News OpenAI's Ambitious Plan to Boost Global...

OpenAI’s Ambitious Plan to Boost Global AI and Chip Infrastructure
OpenAI’s Ambitious Plan to Boost Global AI and Chip Infrastructure

Actionable Trade Ideas

always free

World Economic Forum 2024: OpenAI CEO Sam Altman
Photo by Anadolu/Anadolu via Getty Images

Sam Altman, the CEO of OpenAI, is in discussions with investors to secure a staggering $5 trillion to $7 trillion for a groundbreaking project aimed at revolutionizing the world’s chip-making capacity and its ability to power artificial intelligence (AI), as per the Wall Street Journal’s sources familiar with the matter.

Potential investors allegedly include the government of the United Arab Emirates, as Altman recently engaged with the country’s national security advisor Sheikh Tahnoun bin Zayed al Nahyan. The UAE-based AI firm and OpenAI partner, G42, presents a pivotal role in these potential proceedings.

The talks are still in their infancy, and the potential list of investors remains undisclosed, cautioned the WSJ. It is worth noting that the fundraising efforts could extend over several years and might not yield the desired outcome.

In discussions with U.S. Commerce Secretary Gina Raimondo, Altman expounded on the ambitious initiative. A company spokesperson stated, β€œOpenAI had productive discussions about increasing global infrastructure and supply chains for chips, energy, and data centers.”

Altman has also been in talks with SoftBank chief Masayoshi Son and representatives of major chipmakers like Taiwan Semiconductor Manufacturing (TSM). Last month, he engaged with executives from South Korea’s semiconductor industry on his quest to establish chip factories. Microsoft, an early backer of OpenAI, is aware of the discussions and extends its support.

β€œThe world needs more AI infrastructure – fab capacity, energy, datacenters, etc. – than people are currently planning to build,” Altman previously emphasized, β€œOpenAI will try to help!”

Recent reports have revealed that OpenAI’s annual revenue reached an estimated $2 billion in December, signaling remarkable growth, according to insiders cited by the Financial Times. This positions OpenAI as one of the fastest-growing technology companies, alongside AI giants Google and Meta.

Despite boasting usage by 92% of Fortune 500 companies as of November, OpenAI is yet to turn a profit, primarily due to the exorbitant costs associated with developing and maintaining AI models – the very obstacles this ambitious project aims to tackle.

OpenAI’s Dominance in the AI Landscape

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.