OpenAI plans to set up chip factories worth $100 billion: Report

OpenAI is planning to set up its own chip factories to keep up with market demand for chips required for AI and generative AI-related workloads.

The company’s CEO Sam Altman is holding discussions with several venture capital firms and other funding organizations to raise about $100 billion for a network of chip factories spread across the globe, according to a Bloomberg report.

Typically, chip factories, which include fabrication units of semiconductors, require huge investments as the machinery and technology involved in the setup process are very expensive.

Altman, reportedly, has spoken with AI firm G42, which is based in Abu Dhabi, and investment firm SoftBank Group. The new chip venture, if formed, will supply chips for AI-based workloads globally, Bloomberg reported citing sources.  

From G42, the company is looking to raise somewhere between $8 to $10 billion, according to the report. Earlier in October, G42 partnered with OpenAI to deliver AI-based services to local and regional markets.

In December, it was reported that the company was trying to raise $100 billion but at that time there was no information on what the new amount would be used for.