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Feature Story
US compels Saudi fund to exit Altman-backed AI chip startup - Bloomberg News
Dec 02, 2023 · reuters.com/cloudfront-us-east-2.images.arcpublishing.com/reuters/NZCQ6UQFVZIUPLMBJBWDCFOXX4.jpg)
Rain Neuromorphics, which designs chips that mimic the brain's functioning for AI applications, raised $25 million in 2022, with Prosperity7 as a lead investor. This move by the U.S. government is part of its broader efforts to safeguard national security, including expanding restrictions on exports of AI chips to some Middle Eastern countries.
Key takeaways
- The Biden administration has forced a Saudi Aramco-backed venture capital firm to sell its shares in Rain Neuromorphics, a Silicon Valley AI chip startup backed by OpenAI co-founder Sam Altman.
- Rain Neuromorphics, which designs chips that mimic the way the brain works and aims to serve companies using AI algorithms, raised $25 million in 2022.
- The shares were sold after a review by the Committee on Foreign Investment in the United States (CFIUS), a U.S. watchdog for deals with national security implications.
- The U.S. has taken action that could slow AI development in the Middle East, including expanding the restriction of exports of sophisticated Nvidia and Advanced Micro Devices artificial-intelligence chips to include some countries in the region.