Chip Factories

Sam Altman toys with the idea of setting up chips factories to power AI. He has already met several officials from the UAE to pitch for his plan to build chips factories. The capital outlay expected to realize this dream touches $5 trillion to $7 trillion. As we know, the USA economy is $23 trillion, and hence $7 trillion is a lot of money. It is way more than the US spent on building its highway network.

Altman is hoping to partner with investors and other chip makers. There would be foundries that could be utilized by the existing chip makers. OpenAI and other companies could be the customers for these chip makers. The capital raised would be debt plus equity. The talks are in the preliminary stages. There is no clear idea about the potential investors.

President Biden recently signed the Chips Act which earmarks $52 billion in subsidies to build factories in the USA.

Altima’s plan is more ambitious. There are just a few things that cost in trillions.

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