Advanced semiconductor chips are essential to train and run the AI programs that enable generative AI products such as ChatGPT. Altman and other technology leaders argue that AI will fundamentally transform the global economy and that providing affordable computer chips is critical to maintaining America's economic and military competitiveness.
The United States plans to spend billions of dollars to increase domestic chip production while also blocking exports of advanced AI chips to China to prevent its military from accessing cutting-edge AI. Other governments are also competing for influence, and investing in projects like Altman's could increase their influence over the future of the tech industry.
Altman is spearheading a plan to raise billions, even trillions of dollars, from investors around the world who believe in the chip. One official said that as AI continues to advance, it will become more important to economic and technological advancements.
The project could involve building a new factory or partnering with an existing chip manufacturing company such as Taiwan Semiconductor Manufacturing Co., the world's largest custom chip company that makes about 90% of the world's advanced chips, he said. “This venture could operate similarly to how Apple allocates significant funds to TSMC to ensure a stable supply of chips,” the official said.
Last December, The Washington Post reported that Altman had told venture capital investors Peter Thiel and Vinod Khosla that he planned to start a chip company. To raise funds, he will potentially tap Middle Eastern governments, including Abu Dhabi and Saudi Arabia, as well as Silicon Valley investors. Bloomberg News reported last week that the project is focused on building a “network of factories” to increase chip production.
The White House recently announced the grants as part of its $52 billion Chips for America program. The plan has become part of President Biden's re-election campaign, as he aims to show voters that he has the ability to build the economy and support the technology industry.
An OpenAI spokesperson declined to comment.
Making advanced computer chips is expensive and complex. They must be assembled in a “clean room,” which prevents chips from being damaged by small particles or static electricity. According to Intel, one of the world's largest semiconductor companies, it takes 6,000 people three years to build a single fab and costs $10 billion.
U.S. chip companies such as Nvidia and Advanced Micro Devices design and sell semiconductors but still rely on outside manufacturers, particularly TSMC, to make them. Nvidia's AI chips are the industry standard and considered best suited for AI training, and no other company can match them.
Altman is known for his ambitious dreams and plans. He invested his personal money in a variety of plans to commercialize expensive future technologies, including nuclear fusion reactors and supersonic airliners. In the past, he has advocated for universal basic income for people whose jobs are lost to AI and robots.
Altman said the world does not have the capacity to produce the quantities of computer chips needed to support the AI revolution. Not all tech industry analysts agree. Some AI researchers expect demand for AI chips to slow as engineers find ways to run advanced AI with less computing power.
AI companies are now demanding chips designed by Nvidia. But other chipmakers like Advanced Micro Devices and Intel are investing huge sums to create competing products, and tech giants like Google and Amazon are designing their own chips.