Altman's New AI Chip Venture: A Challenge to Nvidia

Sam Altman, the CEO of OpenAI, is on a mission to find backers for a new company called Rain AI. This startup is aiming to compete with the big player in the AI chip market, Nvidia. Altman is reaching out to OpenAI's investors to raise $150 million for Rain AI's second round of funding. This round is expected to value the company at around $600 million. Altman was also a major investor in Rain AI's initial $25 million seed round last year. Rain AI claims that their chips are more energy-efficient and powerful than Nvidia's. They've even hired a former Apple chip executive, Jean-Didier Allegrucci, to lead their hardware engineering team. This move comes at a time when Nvidia is reportedly strengthening its ties with Elon Musk. Musk is said to be planning a big purchase of Nvidia chips. Altman's push for Rain AI could be seen as a response to Nvidia's growing relationship with Musk. Nvidia currently controls a massive 85% of the AI chip market and is valued at $3. 5 trillion. Despite this, analysts believe there's room for other players in the AI chip market. "Rain AI is one of the serious contenders in the AI chip race, " said Dan Ives, an analyst at Wedbush Securities. "With Altman's backing, they're getting a lot of attention. It's still early in the AI revolution, and we'll see many players emerge, not just Nvidia. "