OpenAI Secures $51M Contract for Revolutionary “Brain” Chips

OpenAI Signs $51 Million Contract with Sam Altman’s Portfolio Company for “Brain” Chip Acquisition

OpenAI, a renowned artificial intelligence research laboratory, has recently entered into a significant contract worth $51 million with a startup called Rain Neuromorphics, included in Sam Altman’s portfolio. The deal involves the acquisition of advanced “brain” chips developed by Rain Neuromorphics, which aims to mimic the functionality of the human brain.

Concerns over Potential Conflicts of Interest

This transaction has raised concerns over potential conflicts of interest due to Sam Altman’s personal investment of $1 million in Rain Neuromorphics. Altman, who was previously fired but later rehired as the CEO of OpenAI, had signed an intention letter for the purchase of NPU chips from Rain Neuromorphics. However, it is important to note that the intention letter is not a legally binding contract, and the deal has not been finalized yet.

Advantages of Rain Neuromorphics’ NPU Inspired by the Brain

Rain Neuromorphics claims that their NPU chips, inspired by the human brain, offer significant advantages over traditional GPUs used in AI development. These NPUs have the potential to provide 100 times higher computing performance and up to 10,000 times higher energy efficiency for AI training purposes. Such advancements could bring innovation to the processing capabilities of portable devices like smartphones and vehicle infotainment systems.

Involvement of CFIUS and Saudi Investors

Prosperity7 Ventures, a Saudi-based venture capital firm, participating in Rain Neuromorphics, has triggered a thorough investigation by the Committee on Foreign Investment in the United States (CFIUS) due to concerns about national security risks. As a result of these concerns, Saudi investors have withdrawn their investment from Rain Neuromorphics. It is noteworthy that Rain Neuromorphics also received investments from the Chinese tech giant Baidu, but CFIUS did not raise similar concerns in that regard.

Growing NPU Market

Rain Neuromorphics is not the only company venturing into the development of Neural Processing Units (NPUs). Industry giants like Intel, IBM, and Cerebras are also actively involved in NPU development. However, it is important to acknowledge that NPUs are not expected to completely replace GPUs in AI applications, as GPUs still excel in handling more complex tasks such as large-scale AI model training.

OpenAI’s Goal and the Future of ChatGPT

OpenAI’s interest in Rain Neuromorphics’ NPU chips aligns with their goal of addressing the GPU shortage issue and exploring alternative solutions for better scalability and performance. OpenAI’s ChatGPT model, which currently relies on GPUs for training and inference, aims to find superior alternatives for ensuring improved scalability and performance. The potential acquisition of Rain Neuromorphics’ NPU chips could serve as a viable alternative solution for NPU/GPU integration.

Conclusion

The $51 million contract between OpenAI and Rain Neuromorphics signifies the organization’s commitment to expanding the boundaries of AI technology. While concerns regarding conflicts of interest and national security have been raised, the potential advantages of NPU chips inspired by the human brain cannot be overlooked. The future of AI development and the role of NPUs in the industry remain intriguing topics. The news was originally reported by Computerworld.