OpenAI’s Sam Altman Seeks Approval from the US to Raise Billions for AI Chips

Sam Altman, CEO of OpenAI, is actively pursuing US government approval for a significant venture aimed at bolstering global artificial intelligence chip manufacturing. This endeavor, however, presents potential challenges surrounding national security and antitrust issues in Washington, as indicated by sources familiar with the situation.

Altman has engaged in discussions with potential investors and partners across the US, Middle East, and Asia in recent weeks. However, he has conveyed to some of them the necessity of obtaining approval from Washington before proceeding further. Recognized for his advocacy efforts on Capitol Hill in promoting AI initiatives, Altman is seeking US officials’ support for a plan to enhance semiconductor production, partly financed by the Middle East. The objective is to raise billions of dollars to substantially expand the world’s capacity for manufacturing cutting-edge computing chips, mitigating concerns of an impending shortfall that could impede AI deployment and field development.

Taiwan Semiconductor Manufacturing Co., Intel Corp., and Samsung Electronics Co. are key players in chip fabrication and potential partners for Altman’s initiative. Meetings with Samsung executives and discussions with TSMC indicate progress towards potential collaborations. Altman has also explored potential investments from Middle Eastern sovereign wealth funds, including those from the United Arab Emirates.

Altman emphasizes the importance of collaborative efforts with the US government regarding the timing and structure of the venture. He has met with Commerce Secretary Gina Raimondo and is arranging meetings with other officials. Altman’s ambitious fundraising endeavors may trigger a national security review of foreign investment by a committee chaired by the Treasury Department and could encounter challenges from the Commerce Department’s controls on chip shipments to the Middle East.

Altman is contemplating the creation and issuance of equity in a new company, separate from OpenAI, which may raise antitrust concerns and underscores the necessity of US government approval before proceeding.

Altman’s plan remains fluid, with decisions pending on the focus of the project and potential partnerships. Recent considerations include addressing green energy supply for AI chip manufacturing, which could escalate costs.

By seeking foreign investment, particularly from entities like the United Arab Emirates wealth fund, Altman may draw scrutiny from the Committee on Foreign Investment in the United States. Establishing semiconductor facilities in the region faces challenges due to expanded US controls on semiconductor shipments to the Middle East.

Altman’s plan may complicate the Commerce Department’s allocation of semiconductor subsidies from the 2022 Chips Act, as it aims to incentivize chipmaking on US soil. However, it remains unclear whether Altman’s initiative aligns with or competes against this effort.

Commerce has announced two small grants so far, with expectations of multi-billion dollar awards in the coming weeks to support advanced chipmaking facilities by TSMC, Samsung, and Intel.