OpenAI plans to purchase AI chips worth $51 million from a startup supported by CEO Sam Altman

Sam Altman, previously fired as the CEO of OpenAI, was involved in a deal where OpenAI intended to purchase $51 million worth of AI chips from Rain AI, a company he personally invested in. The deal illustrates potential conflicts between Altman’s personal investments and his role at OpenAI. Rain, which works on neuromorphic processing units (NPUs), focuses on advanced chip technologies that could greatly improve computing power and energy efficiency for AI development compared to traditional GPUs. OpenAI’s commitment to this purchase underscores its need for cutting-edge hardware to support AI advancements, despite existing hardware constraints and reliance on major cloud providers like Microsoft. Altman has also explored establishing a new AI chip company to address global supply issues. However, Rain’s progress faced scrutiny after a Saudi-affiliated fund’s investment was blocked by the US government over national security concerns, which could delay OpenAI’s access to these chips. Additionally, Rain’s leadership has seen changes, with CEO Gordon Wilson stepping down. Despite these challenges, OpenAI’s need for innovative hardware solutions remains critical as the company looks to maintain a competitive edge in AI technology development.