OpenAI Promises AI Chip Purchase Worth 66.6 Billion KRW to Altman’s Private Investment Firm

It was recently revealed that OpenAI CEO Sam Altman personally invested in an artificial intelligence (AI) startup and agreed to purchase AI chips from the company.

According to the US information technology (IT) magazine Wired on the 4th (local time), OpenAI reportedly signed a letter of intent in 2019 with an AI startup called Rain AI to purchase AI chips that the startup was developing.

Rain AI was founded in 2017 with the goal of developing NPU (neural processing unit) chips that mimic the functions of the human brain. The first chip was expected to be released around October next year.

OpenAI promised to purchase $51 million (66.6 billion KRW) worth of chips once Rain AI’s chips are developed. However, the magazine reported that this letter of intent is not legally binding. It appears that OpenAI is proactively preparing to secure AI chips amid shortages and high prices in the market.

However, controversy has arisen because this startup is a company in which CEO Altman personally invested. Rain AI is a startup in which Altman personally invested $1 million (1.36 billion KRW) earlier. Wired pointed out that the letter of intent between OpenAI and Rain AI for AI chip purchases presents a potential conflict of interest between Altman’s role as CEO and his personal investment.

In particular, a source familiar with OpenAI’s internal affairs explained that this conflict of interest was partly a factor behind the recent sudden removal of CEO Altman by the board of directors.

Previously, when OpenAI’s board dismissed CEO Altman on the 17th of last month, they explained, “We concluded that Altman’s continued lack of transparency in communication hindered the board’s ability to fulfill its responsibilities.”

However, after most employees protested the board’s decision by threatening to leave the company, Altman made a sudden return to OpenAI just five days after his dismissal.