OpenAI founder Sam Altman is exploring plans to develop self-owned data centers as part of an initiative to create proprietary AI chips for the firm. Altman aims to establish one or more companies using external capital to acquire land, secure power, and construct new data centers, which OpenAI would then rent.

This move aligns with Altman’s broader strategy to develop and design AI chips in-house, reducing reliance on suppliers like Nvidia. OpenAI is also in discussions with chip designers such as Broadcom.

To support this effort, Altman is engaging with potential investors, including SoftBank, UAE sovereign wealth funds, and large private equity firms. The initiative is expected to be unveiled later this year.

Currently, OpenAI utilizes Microsoft's data centers through a strategic partnership, with additional collaboration from Oracle to enhance computing power. This new venture follows earlier reports of a potential $100 billion data center project, dubbed "Stargate," and significant investments by Altman in energy solutions for AI data centers, including nuclear fusion and solar energy startups.

Original article posted on July 22, 2024