In a bid to address the global shortage of crucial graphics processing units (GPUs) essential for training and running large-scale AI models, OpenAI CEO Sam Altman is reportedly in discussions to secure an unprecedented $5 to $7 trillion investment for AI chip manufacturing. This audacious endeavor aims to significantly expand the supply of semiconductor chips worldwide, catering to the escalating demand driven by advancements in artificial intelligence technologies.

Altman’s proposal involves forming partnerships between OpenAI, investors, chip makers, and power providers to establish chip foundries, which would then be operated by existing chip manufacturers. The plan also entails OpenAI committing to be a substantial customer of these new facilities.

Meetings have been held with various potential investors globally, including sovereign wealth funds, government entities, and prominent figures such as Masayoshi Son, CEO of SoftBank, and representatives from Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest independent semiconductor foundry.

The involvement of entities like the United Arab Emirates (UAE), particularly led by key security official Sheikh Tahnoun bin Zayed al Nahyan, underscores the strategic significance of semiconductor manufacturing in the realm of AI technology. However, such substantial foreign investments in the tech industry raise geopolitical concerns, particularly regarding semiconductor production and AI development priorities in the United States.

This ambitious funding initiative comes amidst efforts by the Biden administration to bolster domestic chip manufacturing and ensure strategic control over semiconductor supply chains. While Altman’s target dwarfs recent government investments, including a $5 billion allocation for semiconductor R&D announced by the White House, it remains uncertain whether commitments toward the colossal fundraising goal have been secured at this stage.