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Last winter, OpenAI CEO Sam Altman embarked on a whirlwind tour of the Far East, meeting with influential executives from companies such as TSMC, Samsung, and SK hynix. However, it seems that Altman may not have made the best impression on his hosts with his bold plans. According to a report published in the New York Times this week, senior TSMC executives reportedly referred to the head of OpenAI as a “podcasting bro” after their meetings. The NYT states that discussions about OpenAI were held with nine individuals close to the negotiations who wished to remain anonymous.
During his multi-stop trip, Altman outlined his plans for advancing artificial intelligence, involving Asian manufacturing forces, Middle Eastern investors, and U.S. regulators. Sources at the NYT suggest that the investment scale could reach trillions of dollars, equivalent to a quarter of the annual production in the U.S. However, recent announcements have scaled back these figures to “merely” hundreds of billions. Reports also indicate that years of construction would be necessary to meet OpenAI’s computational scaling plans.
Moon dreams fall to earth at TSMC
Known for his ambitious nature, Altman has quickly risen to become one of the most influential figures in the tech industry. However, reports suggest that his plans did not instill confidence among hardline TSMC executives.
The NYT report alleges that during Altman’s visit to Taiwan, he projected a $7 trillion investment over the next few years. This would result in the establishment of 36 modern semiconductor factories and data centers to drive artificial intelligence development. TSMC executives reportedly found Altman’s ideas outlandish, with some even dubbing him a “podcasting bro.” Executives have openly expressed concerns about the high level of risk associated with implementing even a fraction of OpenAI’s CEO’s proposals.
This skepticism towards OpenAI’s ambitions aligns with a report from the summer, citing controversial statements made by newly elected TSMC chairman Dr. CC Wei during the 2024 annual shareholders’ meeting. Wei expressed doubts about Altman’s aggressive approach, stating that he was “too aggressive for me to believe it.”
Altman also visited South Korea to engage with senior representatives from Samsung and SK hynix. However, negotiations were reportedly interrupted due to national security concerns, especially given the relations between countries like the United Arab Emirates and China at that time.
Recent developments suggest a potential shift in technology plans involving the United Arab Emirates, following a meeting between President Biden and Sheikh Mohammed bin Zayed at the White House. They have instructed officials to collaborate on future projects in artificial intelligence, hinting at possible advancements in this field. Rumors about TSMC and Samsung establishing megafactories in the UAE have also surfaced.
Uncertainty shrouds OpenAI’s ambitious plans, with details on contributions and returns from investments remaining unclear. Nevertheless, discussions with companies like Emirates MGX, as well as tech giants Microsoft, Nvidia, and Apple, are ongoing.
Artificial intelligence is still a treasure trove without a killer app
OpenAI’s current business model lacks confidence, relying on promises of future success. While the company generates around $3 billion in revenue annually, its expenses soar to $7 billion.
Altman’s vision revolves around the belief that artificial intelligence will revolutionize industries, akin to electricity. However, leading tech companies have yet to discover the elusive “killer app” for AI. Microsoft’s Copilot struggles and Apple’s delayed AI features on the latest iPhone models underscore this challenge.
FAQs
Q: What was the response to Altman’s plans during his Far East tour?
A: Reports suggest that Altman’s bold plans did not impress hardline TSMC executives, with some referring to him as a “podcasting bro.”
Q: What investment scale was initially projected for advancing artificial intelligence?
A: Altman anticipated a trillion-dollar investment, but recent announcements have scaled back these figures.
Q: Which countries were involved in interrupted negotiations with OpenAI during Altman’s tour?
A: Negotiations with South Korea and the United Arab Emirates were reportedly halted for national security reasons.
Q: What challenges do leading tech companies face in the realm of artificial intelligence?
A: Despite high expectations, companies struggle to find the breakthrough “killer app” for AI, as evidenced by delays and setbacks in AI implementation.
Overall, uncertainties loom over OpenAI’s grand plans, with the integration of various stakeholders and the realization of returns from investments posing key challenges moving forward.
Credit: herosweb.com
