Sam Altman seeks backers for AI chipmaker to challenge Nvidia: source
Sam Altman is personally pitching OpenAI investors on backing an upstart challenger to chipmaking giant Nvidia — even as Nvidia reportedly ramps up its business ties with Elon Musk, The Post has learned.
The OpenAI CEO is promoting an upcoming $150 million second round of financing that values Rain AI — a fledgling manufacturer of high-performance semiconductors — at roughly $600 million, according to a source with direct knowledge of the situation.
Altman was a major investor in Rain AI’s 2022 $25 million seed round, sources said.
The latest round is expected to begin next month, the source said.
“He has introduced the company to all his investors for this series B round,” the source said of Altman.
Rain AI says its chips are much more energy efficient and powerful than Nvidia’s, sources said.
In June, the company hired former Apple chip executive Jean-Didier Allegrucci as head of hardware engineering.
OpenAI declined to comment.
A Rain AI spokesman didn’t immediately respond to requests for comment.
Altman is pushing Rain AI at a time his rival Elon Musk is speaking to Nvidia about investing in his xAI, The Post reported exclusively earlier this month.
Nvidia has a staggering 85% market share in the artificial intelligence chip space and has become the most valuable company in the world with a $3.5 trillion market cap.
It is expected to continue to sell its chips to Open AI even if it invests with Musk.
Still, insiders speculated that Altman has grown concerned that Nvidia’s relationship with Musk is getting too cozy.
Musk is expecting to soon spend billions to buy 100,000 Nvidia chips, CNBC reported.
“Rain AI is one of the legitimate players at the table when it comes to the future of AI and chips,” Wedbush Analyst Dan Ives told The Post.
“There’s a lot of buzz around everything Rain AI is doing and it’s the early days of the AI revolution.,” Ives added. “There’s going to be many players, not just the ‘Godfather of AI’ Jensen Huang and Nvidia.”
“When you have someone like Altman backing [them] that puts them right in the middle of Times Square with a spotlight on them,” he said.
“Any company [Altman] backs is a huge vote of confidence and gives them a massive runway to where they can head.”
