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OpenAI's Altman seeks funds for infrastructure expansion on Asia, Middle East tour, WSJ reports
Oct 4 (Reuters) - OpenAI CEO Sam Altman has embarked on a global fundraising initiative spanning East Asia and the Middle East, seeking financing and manufacturing partners to meet the company's demand for its computing capacity, the Wall Street Journal reported on Saturday, citing sources familiar with the meetings. Altman has held discussions since late September in Taiwan, South Korea, and Japan with major suppliers such as Taiwan Semiconductor Manufacturing (2330.TW), opens new tab, Foxconn, Samsung (005930.KS), opens new tab, and SK Hynix (000660.KS), opens new tab to boost AI chip production and secure top-priority orders for OpenAI, the report said. Altman was pushing these companies to increase production capacity and give priority to OpenAI's orders, the newspaper added. Reuters could not immediately verify the report. Microsoft, TSMC, Foxconn, Samsung and SK Hynix couldn't immediately respond to requests for comment outside regular business hours. Earlier this week, Samsung Electronics and SK Hynix had signed letters of intent to supply memory chips for OpenAI's data centers. Altman has planned to visit investors in the United Arab Emirates to raise money to help fund OpenAI's infrastructure expansion and research, WSJ said. OpenAI recently told its investors and business partners that it was likely to spend around $16 billion in renting computing servers this year, and that the expenditure could rise to around $400 billion in 2029, the report added, citing people familiar with the matter. Reporting by Dheeraj Kumar in Bengaluru; Editing by Alexandra Hudson Our Standards: The Thomson Reuters Trust Principles., opens new tab
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OpenAI's Altman seeks funds for infrastructure expansion on Asia, Middle East tour, WSJ reports
OpenAI CEO Sam Altman is reportedly seeking global financing and manufacturing partners across East Asia and the Middle East to meet the company's computing capacity demands. He has held discussions with major suppliers like TSMC, Foxconn, Samsung, and SK Hynix since late September to boost AI chip production and secure priority orders for OpenAI. OpenAI CEO Sam Altman has embarked on a global fundraising initiative spanning East Asia and the Middle East, seeking financing and manufacturing partners to meet the company's demand for its computing capacity, the Wall Street Journal reported on Saturday, citing sources familiar with the meetings. Altman has held discussions since late September in Taiwan, South Korea, and Japan with major suppliers such as Taiwan Semiconductor Manufacturing, Foxconn, Samsung , and SK Hynix to boost AI chip production and secure top-priority orders for OpenAI, the Wall Street Journal said. Reuters could not immediately verify the report.
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OpenAI CEO Sam Altman is seeking funds and partnerships across Asia and the Middle East to boost the company's computing capacity. His tour includes meetings with major tech suppliers to secure priority in AI chip production.
OpenAI CEO Sam Altman has launched an ambitious global fundraising campaign, traversing East Asia and the Middle East in search of financial backing and manufacturing partnerships. The primary goal of this initiative is to meet OpenAI's growing demand for computing capacity, which is crucial for the company's continued development and expansion in the field of artificial intelligence
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.Since late September, Altman has been engaged in high-level discussions with major tech suppliers across Taiwan, South Korea, and Japan. These meetings have included industry leaders such as Taiwan Semiconductor Manufacturing (TSMC), Foxconn, Samsung, and SK Hynix. The primary objectives of these discussions are twofold: to boost AI chip production and to secure top-priority orders for OpenAI
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.Altman's approach in these meetings has been assertive, pushing these companies to increase their production capacity and prioritize OpenAI's orders. This strategy underscores the critical importance of securing a reliable and robust supply chain for AI chip production in OpenAI's growth plans
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.In addition to his Asian tour, Altman has plans to visit investors in the United Arab Emirates. The purpose of these visits is to raise funds specifically aimed at supporting OpenAI's infrastructure expansion and ongoing research efforts. This move highlights the global nature of Altman's fundraising strategy and the company's ambition to tap into diverse sources of capital
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The scale of OpenAI's infrastructure needs is staggering. According to reports, the company has informed its investors and business partners that it expects to spend approximately $16 billion on renting computing servers in 2023 alone. Even more astonishing is the projected increase in this expenditure, which could rise to around $400 billion by 2029
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.Prior to Altman's current tour, OpenAI had already made significant strides in securing crucial partnerships. Earlier this week, both Samsung Electronics and SK Hynix signed letters of intent to supply memory chips for OpenAI's data centers. These agreements serve as a precursor to the more extensive collaborations that Altman is now pursuing
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.As OpenAI continues to push the boundaries of artificial intelligence, the company's aggressive pursuit of funding and partnerships underscores the immense resources required to stay at the forefront of AI innovation. The outcome of Altman's global tour could significantly shape the future of AI infrastructure and the competitive landscape in the tech industry.
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04 Sept 2024
01 Oct 2025β’Technology
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