Latest / Elon Musk Podcast / Startup Backed by CEO Sam Altman Agrees to sell OpenAI $51 Million worth of Chips

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Startup Backed by CEO Sam Altman Agrees to sell OpenAI $51 Million worth of Chips · Elon Musk Podcast

• 0:01
  Hey everybody, welcome back to the Elon Musk Podcast.
• 0:05
  This is a show where we discuss the critical Crossroads, the
• 0:08
  Shape, SpaceX, Tesla X, The Boring Company, and Neuralink.
• 0:13
  I'm your host, Will Walden. In today's episode, we're going
• 0:16
  to be talking about Open AI and Sam Altman's chip company.
• 0:22
  It's a weird story, and in a surprising turn of events, Sam,
• 0:27
  the CEO of Open AI, Sam Altman, briefly lost his position before
• 0:31
  being reinstated last month. This incident has brought
• 0:35
  attention to the complex interplay between Altman's
• 0:37
  professional role in his personal investment ventures,
• 0:40
  particularly his involvement with a chip startup named Rain
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  AI. And despite being removed from
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  his position due to alleged uncanded communications,
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  Altman's influence in the tech industry remains pretty
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  significant, particularly in the realm of artificial
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  intelligence. Now, Open AI, a leader in AI
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  research and development, had earlier signed a letter of
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  intent to invest $51 million in neuromorphic Processing units,
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  or NP US, from Rain AI, which are designed to emulate the
• 1:12
  human brain's functionalities. In.
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  This deal, forged under Altman's leadership at Open AI, raises
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  questions about the potential conflicts of interest, given
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  that Altman also personally invested in Rain AI.
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  Now he invested about $1,000,000 in Rain AI by the way, and
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  founded in 2017, Rain AI is at the forefront of developing NP
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  US that promise to significantly enhance computing power and
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  energy efficiency compared to the current standard GP user
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  graphic processing units. Now these advancements are
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  critical. Edit this out now, these
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  advancements are critical for AI development, particularly for
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  firms like Open AI, which rely heavily on powerful computing
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  hardware for projects such as ChatGPT.
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  Altman's investment in Rain AI, coupled with the deal between
• 2:02
  Open AI and Rain AI, exemplifies the intricate blend of personal
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  and professional interests that often characterizes Silicon
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  Valley's tech scene, His prior role at Y Combinator.
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  He still has a part in that a prominent startup incubator has
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  positioned him as a key player in tech investments, but this
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  has also led to questions about the appropriateness of his dual
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  roles. Open A is agreement with Rain
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  underscores its pressing need for advanced chip technology to
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  stay ahead of the pack. And despite access to
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  Microsoft's cloud services, Open AI face constraints due to
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  hardware limitations, highlighting the broader
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  challenge in AI development, the need for power, speed,
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  efficiency, and accessible computing resources.
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  Rain AI has not been without its own challenges, though.
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  Recently, the company underwent a leadership change, with its
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  founding CEO Gordon Wilson stepping down to an advisory
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  role. There's transition, along with
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  other internal shifts, could have implications for Reign AI's
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  progress and its dealings with Open AI.
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  Adding to the complexity, Reign AI face scrutiny from the US
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  government due to its investment ties with Saudi Arabia
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  affiliated fund Prosperity 7 Ventures and the forced
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  divestment of this Funds from Reign AI's investment list,
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  driven by national security concerns, may impact the
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  company's ability to bring its novel chip tech to market
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  promptly and beyond. Reign AI Altman has shown
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  interest in further diversifying the AI chip market.
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  His discussions with investors about starting a new chip
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  company reflect the strategic importance of this technology in
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  a is future and the need to reduce reliance on current major
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  suppliers like NVIDIA. The increasing demand for
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  advanced AI chip technology underscores a critical aspect of
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  a is industry growth now? Efficient, powerful, and cost
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  effective chips are essential for the advancement of AI tech,
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  and Altman's involvement in this area is a testament to its
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  importance. And the intertwined
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  relationships between Sam Altman, Open AI and Rain AI
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  provide a unique insight into the dynamics of technological
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  advancement and corporate investment.
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  The outcomes of these relationships will have
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  important implications for the development in the application
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  of AI technologies in the future, particularly in how they
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  are powered and how they are scaled.
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  And as the AI field continues to expand to get more competitive,
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  the focus on developing and securing advanced chip
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  technology will become increasingly crucial.
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  And the narrative involving Altman, Open AI and Rain AI is
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  more than just a story of corporate dealings, It's a
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  reflection of the strategic shifts and technological needs
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  of an industry in its infancy. The story of Sam Altman's brief
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  dismissal and reinstatement at Open AICEO entwined with his
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  investments in Rain. It's a complex picture of the
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  intersections between personal investments, professional
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  responsibilities, and technological advancements in AI
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  And I was the industry moves forward.
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  The resolution of these complexities in the successful
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  development of essential tech like AI chips will play a
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  pivotal role in shaping the future of artificial
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  intelligence. And I'll be bringing you more on
• 5:14
  this story as it unfolds. Thank you so much for tuning
• 5:17
  into the show today. I really do appreciate your
• 5:20
  support. If you could take a second and
• 5:22
  hit the subscribe or the follow button on whatever podcast
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  platform that you're listening on right now, I greatly
• 5:28
  appreciate it. It helps out the show
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  tremendously and you'll never miss an episode and each episode
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  is about 10 minutes or less to get you caught up quickly.
• 5:37
  And please, if you want to support the show even more, go
• 5:40
  to patreon.com/stage Zero and please take care of yourselves
• 5:45
  and each other and I'll see you tomorrow.