'OpenAI's Sam Altman Seeks To Raise Billions For Network Of AI Chip Factories' - BNN Bloomberg
Portfolio Pulse from Benzinga Newsdesk
Sam Altman, prior to his ouster from OpenAI, was seeking to raise billions for a new AI chip venture, code-named Tigris, to compete with Nvidia Corp. He aimed to create semiconductors for AI tasks and had discussions with investors like SoftBank, Saudi Arabia's PIF, and Mubadala. Altman also planned an AI hardware device with Jony Ive. OpenAI is finalizing a tender offer at an $86 billion valuation. Altman's departure was due to a breakdown in communication with the board, not financial or safety issues. His new venture would focus on TPUs to lower costs for services like ChatGPT and Dall-E. US regulators may scrutinize foreign investments. Microsoft, OpenAI's biggest investor, is interested in backing Altman's chip venture.
January 19, 2024 | 5:13 pm
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NEGATIVE IMPACT
Sam Altman's new AI chip venture aims to compete directly with Nvidia's dominance in the AI semiconductor market.
The formation of a new competitor in the AI chip market, especially one led by a high-profile figure like Sam Altman, could pose a threat to Nvidia's current market dominance. This could lead to increased competition and pressure on Nvidia's market share and pricing power in the short term.
CONFIDENCE 60
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Microsoft, as OpenAI's biggest investor, has shown interest in backing Sam Altman's new AI chip venture.
Microsoft's interest in supporting Altman's chip venture could signal a strategic move to strengthen its position in the AI sector and diversify its AI investments. This could be seen positively by investors as an opportunity for Microsoft to benefit from advancements in AI chip technology.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 70