OpenAI committed to a $51 million investment in a chip startup, Rain AI.
This AI research organization, headed by CEO Sam Altman, signed a letter of intent in 2019 agreeing to the payout when the chips are produced. Altman himself has reportedly invested over $1 million in the startup, Business Insider reported, citing Wired.
San Francisco-based Rain AI is dedicated to creating chips that emulate brain function. Their mission is to develop "cost and energy-efficient hardware" for AI companies, as stated on their LinkedIn page.
The company's former CEO, Gordon Wilson, recently stepped down from his role and announced his plans to continue serving as an executive advisor.
Rain AI's backers also include Daniel Gross, co-founder of search engine Cue, and startup accelerator Y Combinator, where Altman served as president from 2014 to 2019.
Previously, Rain AI raised $25 million in a funding round led by Saudi Aramco's investment vehicle Prosperity7. However, the Committee on Foreign Investment in the United States (CFIUS) ordered Prosperity7 to withdraw its support.