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OpenAI Committed to Buying $51 Million of AI Chips From a Startup Backed by CEO Sam Altman

Dec 03, 2023 - wired.com
Sam Altman, the CEO of OpenAI, was reinstated after being fired last month and stands to gain from the company's development of ChatGPT. During his tenure, OpenAI signed a letter of intent to spend $51 million on AI chips from Rain AI, a startup in which Altman has personally invested. Rain AI is working on a neuromorphic processing unit (NPU) designed to replicate features of the human brain. However, Altman's personal investments have raised questions about potential conflicts of interest with his role as OpenAI CEO.

Rain AI has faced challenges, including a reshuffle of its leadership and the forced removal of Saudi Arabia-affiliated fund Prosperity7 Ventures from its investors by a US government body concerned about national security risks. This could potentially delay OpenAI's $51 million advance order. Altman has also been in talks with investors in the Middle East about starting a new chip company to help OpenAI and others diversify their reliance on current suppliers.

Key takeaways:

  • Sam Altman, the CEO of OpenAI, was reinstated after being fired and has a personal investment in Rain AI, a startup that OpenAI intended to purchase $51 million worth of AI chips from.
  • Rain AI, based in San Francisco, is developing a neuromorphic processing unit (NPU) designed to replicate features of the human brain. The company has faced challenges including a reshuffling of leadership and the forced removal of a Saudi Arabia-affiliated fund from its investors.
  • Altman's personal investments have raised concerns about potential conflicts of interest with his role as CEO of OpenAI. His firing was reportedly due in part to these distractions and intermingling of interests.
  • OpenAI has shown willingness to spend large sums on AI chips, with Altman noting the high costs and supply constraints of these chips. He has also discussed starting a new chip company to help OpenAI and others diversify their chip supply beyond current providers.
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