Sam Altman, CEO of OpenAI, which developed ‘ChatGPT’, a generative artificial intelligence (AI), is seeking to raise up to $7 trillion (KRW 9,300 trillion) in funding to directly manufacture AI semiconductors. Attracts world attention. Altman’s AI semiconductor business can also be a new business opportunity for Korean semiconductor companies such as Samsung Electronics and SK Hynix.
However, some are predicting that NVIDIA, the absolute leader in existing AI semiconductors, will respond appropriately to Altman.
According to the industry on the 13th, the Wall Street Journal (WSJ) recently reported that Altman is meeting with large investors, including the United Arab Emirates (UAE) government, to seek financing worth 5 to 7 trillion dollars (9,300 trillion won).
Currently, AI semiconductors are needed in all industries, including AI learning and services, and the AI development craze is spreading around the world, causing an extreme supply shortage. In addition, American semiconductor company NVIDIA controls more than 90% of the market, and AI semiconductor prices continue to rise, with AI semiconductors being traded at a premium. Accordingly, Altman decided to pursue self-manufacturing of AI semiconductors.
If Altman’s vision is realized, the global semiconductor industry could face a major turning point. The maximum amount invested, $7 trillion, is 14 times more than last year’s global semiconductor sales of $527 billion.
In particular, Altman’s plan includes AI semiconductor manufacturing, and cooperation with foundry (semiconductor consignment production) companies such as Taiwan’s TSMC or Samsung Electronics is essential. According to foreign media, Altman is envisioning a partnership system in which various investors, chip manufacturers, and power suppliers from the Middle East and elsewhere pool funds to build an AI semiconductor foundry, and then existing chip manufacturers take over production.
Cooperation with HBM (high bandwidth memory) memory manufacturers such as Samsung Electronics and SK Hynix is also important. Samsung Electronics and SK Hynix are mass producing HBM, the core of AI semiconductors. The combined HBM market shares of both companies account for over 90% of the global market share.
CEO Altman, who visited Korea last month, visited Samsung Electronics’ Pyeongtaek campus and toured the semiconductor production facilities, and met with CEO Kyeong-Hyeon Kye twice and had in-depth discussions. It is known that not only SK Hynix CEO Kwak No-jeong but also SK Group Chairman Chey Tae-won met with Altman.
◆Is investment realistic? Skepticism still prevails
However, Altman’s ambitious plan is met with considerable skepticism.
First of all, it is pointed out that the size of the investment fund is too large and it will be difficult to raise it realistically. Semiconductors require different performance and specifications for each company, so global companies such as Google, Apple, and Amazon are already working on their own semiconductor development. For this reason, it is analyzed that it will be difficult to receive investment from these companies.
The semiconductor industry’s vulnerability to economic fluctuations could also be an obstacle to Altman’s bold investment plan. The U.S. government’s attempt to build a domestic semiconductor supply chain is also a factor that increases this business risk.
It is also noteworthy that NVIDIA took a completely opposite stance after Altman’s business plan became known.
NVIDIA CEO Jensen Huang attended the 2024 World Government Summit (WGS) dialogue program held in Dubai, United Arab Emirates (UAE) on the 12th (local time) and said, “Thanks to the chip (semiconductor) industry that manufactures faster and faster, the cost of AI has increased significantly. “It can be lowered,” he emphasized. This means that the ‘cost burden’, which is the biggest reason why Altman wants to produce AI semiconductors directly, can be lowered in the future.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.