Ousted OpenAI CEO Plans to Establish New AI Company
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Core News, November 20 - The perplexing incident of 'OpenAI's board firing its CEO' continued to dominate the tech world over the past weekend, with new insider information still being revealed.
According to foreign media citing informed sources, weeks before being ousted, OpenAI CEO Sam Altman actively sought to raise billions of dollars from some of the world's largest investors for a new artificial intelligence (AI) chip venture.
Altman's planned AI chip company would produce chips to compete with Nvidia. The company has not yet been established, and discussions with investors are in the early stages. Sources indicate that Altman has been traveling to the Middle East to secure funding for the project, codenamed Tigris.
Insiders reveal that several prominent venture capital firms, including some existing investors in OpenAI, are prepared to support any new enterprise Sam Altman establishes. Sources indicate Microsoft, OpenAI's largest investor, has expressed interest in backing Altman's chip venture, though the company declined to comment.
Venture capitalist Vinod Khosla publicly stated on platform X his hope for Altman's return to OpenAI while pledging support for his future projects regardless of outcome.
The scale, strategic focus, and previously undisclosed project codename details surrounding Altman's chip ambitions had not been reported until now.
Altman's fundraising coincides with a pivotal moment for OpenAI. While navigating the ChatGPT phenomenon, the company has been finalizing a tender offer led by Thrive Capital, enabling employee share sales at an $86 billion valuation. One source noted SoftBank and others initially sought participation but were relegated to a waitlist for similar transactions. During this period, two sources confirm Altman actively pitched investors regarding his new venture.
OpenAI announced on Friday that Sam Altman was removed from his position after an internal review found that he "was not consistently candid in his communications with the board." According to a source familiar with the matter, the OpenAI board and Altman had disagreements over AI safety, the pace of technological development, and the company's commercialization efforts. Altman's ambitions and side projects further complicated the already strained relationship with the board.
OpenAI Chief Operating Officer Brad Lightcap wrote in a memo to employees: "We can say definitively that the board's decision was not made in response to malfeasance or anything related to our financial, business, safety/privacy practices. This was a breakdown in communication between Sam and the board."
The OpenAI board is facing pressure from investors to reinstate Altman, and one possible outcome is a board restructuring. However, even if Altman returns, he may still need the OpenAI board's approval to continue pursuing his side projects.
Altman's goal is to develop specialized chips—TPUs (Tensor Processing Units)—for handling massive AI workloads. This initiative aims to reduce the cost of AI chips and help OpenAI lower the ongoing operational expenses of its AI services.
However, the development timeline is long and complex. Seeking overseas investors may raise concerns with U.S. regulators. "If overseas investments are passive—for example, without board seats—and kept below 10%, they are less likely to face scrutiny," said Philip Ludvigson, a former U.S. Treasury official and attorney at King & Spalding. "This is often the case, even in sensitive industries like AI and chip manufacturing."
Altman has also been seeking funding for an AI hardware device and collaborating with Jony Ive, Apple's former design chief, and SoftBank Group. According to sources, Altman has held talks with SoftBank Group, Saudi Arabia's Public Investment Fund, and Mubadala Investment Company about these joint ventures, aiming to raise tens of billions of dollars for these new companies.
Representatives from Saudi Arabia's Public Investment Fund did not immediately respond to requests for comment. OpenAI, SoftBank, and Mubadala declined to comment.