Sam Altman’s OpenAI is on a bullet train toward becoming the most valued start-up in the world, after Elon Musk’s SpaceX. A offered a glimpse into the early discussions with investors that predict an estimated $100 billion valuation in the near future.
Though funding timelines, terms, and valuations are yet to be set in stone, OpenAI is gearing up to enter the AI chip race. An internal decision that triggered an outpour of billions from Alphabet Inc. and Amazon.com Inc. into OpenAI’s rival, Anthropic.
OpenAI’s natural language chatbot, ChatGPT, propelled the AI boom to new heights in 2021. This pulsating innovation is only getting stronger as a fresh batch of funds enter Sam Altman’s non-profit tech lab. By forging strategic partnerships with chip developers in the region, OpenAI is inching closer to becoming a fully stacked AI giant.
Through its collaboration with G42, an Abu Dhabi-based AI development company, OpenAI hopes to launch Tigris, an AI chipmaking project expected to raise approximately $10 billion. A hefty chunk of capital will fund the creation of OpenAI’s very own semiconductors and “deliver cutting-edge AI solutions to the UAE and regional markets.” Reports from Reuters confirmed that the brains behind ChatGPT have been toying with the prospect of acquiring a semiconductor company or developing in-house AI chips since October.
But with Sam Altman’s mysterious firing and re-hiring episode in November, these possibilities were temporarily shelved. Altman’s dramatic return to the board reminded the startup of its ambitious goals and reignited the quest for chip capital.
As Silicon Valley’s rising star, OpenAI raised $13 billion from Microsoft Corp. The completion of a separate tender offer in early January will allow OpenAI employees “to sell their shares at a valuation of $86 billion.”
With the influx of billions of dollars, OpenAI’s trajectory is bound to skyrocket. They’ve got the brains and plenty of muscle, and in time, they will possess enough funds to redefine the course of AI’s future.
