Sam Altman’s Rain AI: A New Contender in the High-Stakes AI Chip Race 💡👇 OpenAI CEO Sam Altman is leading a $150 million funding round for Rain AI, a semiconductor startup aiming to rival Nvidia’s dominance in the AI chip market. This investment, valuing Rain AI at $600 million, follows a $25 million seed round in 2022 where Altman was a major investor. Rain AI claims its chips offer 85% greater energy efficiency than NVIDIA’s, a key advantage in the increasingly energy-intensive AI sector. The company recently hired former Apple executive Jean-Didier Allegrucci to head hardware engineering. This move comes at a time when Nvidia’s relationship with Elon Musk is strengthening. Musk’s xAI is reportedly planning to purchase 100,000 Nvidia #processors for its #AI projects, a deal potentially worth billions. While Nvidia is expected to continue supplying #chips to OpenAI, speculation suggests Altman is concerned about the growing closeness between Nvidia and Musk. This strategic investment in Rain AI is seen as a countermove, aiming to diversify OpenAI’s supply chain and potentially reduce its reliance on Nvidia. The funding round is expected to close next month. #samaltman #elonmusk #xAI
