Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

OpenAI is paying out $51 million to a chip startup that Sam Altman personally invested in, report says

Dec 04, 2023 - businessinsider.com
OpenAI has signed a letter of intent to spend $51 million on chip startup Rain AI when its chips are released, according to a report by Wired. The agreement was made in 2019, and OpenAI CEO Sam Altman has reportedly invested over $1 million of his own money in the firm. Rain AI, based in San Francisco, makes chips that imitate how brains work and aims to build cost and energy-efficient hardware for AI companies.

The company has also received backing from Daniel Gross, cofounder of search engine Cue, and startup accelerator Y Combinator. Saudi Aramco's investment vehicle Prosperity7 led a funding round last year that saw Rain raise $25 million, but was later forced to sell its share following scrutiny from the Committee on Foreign Investment in the United States (CFIUS). Rain AI has not yet responded to a request for comment from Business Insider.

Key takeaways:

  • OpenAI has signed a letter of intent to spend $51 million on chip startup Rain AI, with the payment due when the chips are released.
  • OpenAI CEO Sam Altman has reportedly invested over $1 million of his own money in Rain AI.
  • Rain AI, which makes chips that imitate how brains work, is also backed by Daniel Gross, cofounder of search engine Cue, and startup accelerator Y Combinator.
  • Saudi Aramco's investment vehicle Prosperity7 had to sell its share in Rain AI following scrutiny from the Committee on Foreign Investment in the United States (CFIUS).
View Full Article

Comments (0)

Be the first to comment!