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OpenAI prepares for massive AI infrastructure buildout in the United States

OpenAI prepares for massive AI infrastructure buildout in the United States

CryptopolitanCryptopolitan2024/09/03 16:00
By:By Brenda Kanana

Share link:In this post: OpenAI is set to build additional capacity for AI computing and data storage in the United States. The project will include investors from Canada, Korea, Japan, and UAE, with a possible contribution from Microsoft. US national security officials are examining the project because of the involvement of foreign funding.

OpenAI, led by CEO Sam Altman, is intensifying its efforts to develop the necessary infrastructure to support the rapid expansion of artificial intelligence. The company has depicted a massive expansion plan across several U.S. states, which is expected to gulp tens of billions of dollars in investment. 

According to a Bloomberg report , some of the planned projects are the development of data centers, energy capacity upgrades, and increases in semiconductor production. 

Global partnerships fuel OpenAI’s growth strategy

The OpenAI model includes investors from around the world, including Canada, South Korea, Japan, and the United Arab Emirates. Microsoft, the largest investor in OpenAI, is expected to play a major role in these infrastructure projects. 

In the past few weeks, OpenAI’s management has been meeting with potential investors from various countries to seek the needed capital. Chief Strategy Officer, Jason Kwon, has been active in Japan and South Korea, while Vice President of Global Policy Chris Lehane has been targeting investors in Canada. Altman has also held meetings with investors in the UAE regarding the global scope of the infrastructure plan. 

However, the cross-border nature of these investments has created concerns over the national security of the United States. This has raised concerns from the Committee on Foreign Investment in the United States (CFIUS), especially with Middle Eastern investors. This committee has become more sensitive to the role of Middle Eastern sovereign wealth funds and their links to China. 

See also Microsoft confirms Windows 11 Recall AI glitch in latest update

OpenAI addresses US government security worries

In response to these issues, OpenAI has held talks with the US National Security Council, stating that the proposed investments would strengthen America’s geopolitical position. These talks come as the US Artificial Intelligence Safety Institute recently announced a partnership with OpenAI. According to the MoU signed with OpenAI,  the government agency will investigate, compare, and assess the AI models provided by the two companies.

This is also in line with the Biden administration’s bid to strengthen the US technology and semiconductor production capabilities. The Chips and Science Act, which provides $39 billion in grants for semiconductor manufacturing, also supports OpenAI’s goal of developing essential infrastructure. In his recent Washington Post column, Altman highlighted the need for American infrastructure to maintain a competitive advantage over authoritarian governments. 

As previously reported by Cryptopolitan, OpenAI has established a major deal to acquire the capacity for TSMC’s future Angstrom-level A16 chips. This will allow OpenAI to integrate with modern technological innovations in the semiconductor industry for AI hardware.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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