Altman seeks funding for AI chips
Middle East, China interested; U.S. must OK
Openai Chief Executive Officer Sam Altman is working to secure U.S. government approval for a massive venture to boost global manufacturing of artificial intelligence chips, an effort that risks raising national security and antitrust concerns in Washington, according to people familiar with the matter.
Altman has been meeting with potential investors and partners in the United States, Middle East and Asia over the past few weeks, but he has told some of them that he can’t move forward without a green light from Washington, said the people, who asked not to be named discussing confidential conversations.
Altman, a familiar face in D.C. after repeated visits to Capitol Hill to advocate his AI agenda, is now trying to get U.S. officials on board with a plan to turbocharge semiconductor production with financing in part from the Middle East.
He aims to raise billions of dollars to dramatically increase the world’s capacity to make cutting-edge computing chips, staving off a shortfall he worries will interfere with wide-scale deployment of AI and continued development of the field, Bloomberg reported last month.
Taiwan Semiconductor Manufacturing Co., Intel Corp. and Samsung Electronics Co. are the main companies that fabricate such chips and thus possible partners for Altman’s effort.
Bloomberg reported he met with Samsung executives last month and the Financial Times reported he met with TSMC. He has spoken with Middle Eastern sovereign wealth funds about potential investments, Bloomberg has reported, including from the United Arab Emirates.
Altman has indicated he believes it’s essential to work collaboratively with the U.S. government on approvals, timing and structure for the venture, according to one person familiar with the matter, who asked not to be named discussing private conversations.
The CEO has met with Commerce Secretary Gina Raimondo and is working to arrange meetings with other officials, the people said, and Commerce officials have held internal discussions on Openai’s Middle East ambitions. The Wall Street Journal previously reported that the two had met.
“Openai has had productive discussions about increasing global infrastructure and supply chains for chips, energy, and data centers — which are crucial for AI and other industries that rely on them,” the company said in a statement. “We will continue to keep the U.S. government informed given the importance to national priorities, and look forward to sharing more details at a later date.”
A Commerce spokesperson said Raimondo meets with a wide array of industry leaders, and the agency does not disclose details of individual conversations.
Altman’s ambitious fundraising push risks triggering a national security review of foreign investment by a committee chaired by the Treasury Department and could run up against the Commerce Department’s controls on chip shipments to the Middle East.
Altman is also considering whether to create and issue equity in a new company, separate from Openai, some of the people said, in a move that might raise antitrust concerns. That’s part of why the plan needs
U.S. government approval before moving forward.