Elon Musk in his individual capacity has sued Sam Altman, Gregory Brockman, Open AI and its affiliate companies, of breach of founding contract, and a deviation from its founding goal to be a non-profit tasked with the development of AI toward the benefit of humanity. This lawsuit comes in the wake of Open AI's relationship with Microsoft, which Musk says compromises its founding contract. Musk alleges breach of contract, breach of fiduciary duty, and unfair business practices against Open AI, and demands that the company revert to being open-source with all its technology, and function as a non-profit.

Musk also requests an injunction to prevent Open AI and the other defendants from profiting off Open AI technology. In particular, Musk alleges that GPT-4 isn't open-source, claiming that only Open AI and Microsoft know its inner workings, and Microsoft stands to monetize GPT-4 "for a fortune." Microsoft, interestingly, was not named in the lawsuit as a defendant. Elon Musk sat on the original board of Open AI until his departure in 2018, is said to be a key sponsor of AI acceleration hardware used in the pioneering work done by Open AI.

US Commerce Secretary, Gina Raimondo, was a notable guest speaker during yesterday's Intel Foundry Direct Connect Keynote—she was invited on (via a video link) to discuss the matter of strengthening the nation's semiconductor industry, and staying competitive with global rivals. During discussions, Pat Gelsinger (Intel CEO) cheekily asked whether a "CHIPS Act Part Two" was in the pipeline. Raimondo responded by stating that she is till busy with the original $52 billion tranche: "I'm out of breath running as fast as I can implementing CHIPS One." Earlier this week, her department revealed a $1.5 billion planned direct fund for GlobalFoundries: "this investment will enable GF to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, IoT, aerospace, defense, and other vital markets."

Intel is set to receive a large grant courtesy of the US government's 2022-launched CHIPS and Science Act—exact figures have not been revealed to the public, but a Nikkei Asia report suggests that Team Blue will be benefiting significantly in the near future: "While the Commerce Department has not yet announced how much of the funding package's $52 billion it would grant Intel, the American chipmaker is expected to get a significant portion, according to analysts and officials close to the situation." Raimondo stated that: "Intel is an American champion company and has a very huge role to play in this revitalization." The US Commerce Chief also revealed that she had spoken with artificial intelligence industry leaders, including OpenAI's Sam Altman, about the ever-growing demand for AI-crunching processors/accelerators/GPUs. The country's semiconductor production efforts could be bolstered once more, in order to preserve a competitive edge—Raimondo addressed Gelsinger's jokey request for another batch of subsidies: "I suspect there will have to be—whether you call it Chips Two or something else—continued investment if we want to lead the world...We fell pretty far. We took our eye off the ball."

In case you missed it, Sam Altman of OpenAI took the Internet by storm late last week with the unveiling of Sora, the generative AI that can congure up photoreal video clips based on prompts, with deadly accuracy. While Altman and his colleagues in the generative AI industry had a ton of fun generating videos based on prompts from the public on X; it became all too clear that the only thing holding back the democratization of generative AI is the volume of AI accelerator chips. Altman wants to solve this by designing his own AI acceleration hardware from the grounds up, for which he initially pitched an otherworldly $7 trillion in investment—something impossible with the financial markets, but one that's possible only by "printing money," or through sovereign wealth fund investments.

Jim Keller needs no introduction—the celebrity VLSI architect has been designing number crunching devices of all shapes and sizes for some of the biggest tech companies out there for decades, including Intel, Apple, and AMD, just to name a few. When as part of his "are you not entertained?" victory lap, Altman suggested that his vision for the future needs an even larger $8 trillion investment, Keller responded that he could design an AI chip for less than $1 trillion. Does Altman really need several trillions of Dollars to build a grounds-up AI chip at the costs and volumes needed to mainstream AI?

Sam Altman of OpenAI just unveiled Sora, the all new speech-to-video AI model that exactly the way science fiction would want such a thing to work—imagine fluid, photorealistic, true-color video clips based entirely on text prompts. Sora is generative AI on an exponentially higher scale than Dall-E, and presumably requires an enormously higher amount of compute power. But to those that can afford to rent out a large hardware instance, this means the power to create a video of just about anything. Everything democratizes with time, and in a few years, Sora could become the greatest tool for independent content creators, as they could draw up entire worlds using just prompts and green screens. Sora strapped to a mixed reality headset such as the Apple Vision Pro, is basically a Holodeck.

Various news outlets have been keeping tabs on OpenAI's CEO—Sam Altman—the AI technology evangelist was reported to be pursuing an ambitious proprietary AI chip project in early 2024. Inside sources pointed to late-January negotiations with important investment personnel in the Middle East—many believe that OpenAI leadership is exploring the idea of establishing its own network of semiconductor production plants. Late last week, The Wall Street Journal followed up on last month's AI industry rumors: "(Altman) has another great ambition: raising trillions of dollars to reshape the global semiconductor industry. The OpenAI chief executive officer is in talks with investors including the United Arab Emirates government to raise funds for a wildly ambitious tech initiative that would boost the world's chip-building capacity, expand its ability to power AI." One anonymous insider reckons that "the project could require raising as much as $5 trillion to $7 trillion."

TSMC is reportedly in the equation—Altman allegedly conducted talks with top brass last month—their expertise in cutting edge fabrication techniques would be of great value, although it is somewhat futile to reveal too many industry secrets given the sheer scale of OpenAI's (reported) aggressive expansion plans. The Wall Street Journal (WSJ) suggests that the embryonic venture is far more "open" than previously reported—a collaborative venture could be established once funding is secured, although Altman & Co. face "significant obstacles" en route. WSJ proposes that the somewhat OpenAI-centric fabrication network is best founded by a joint partnership—involving multiple investors, contract chip manufacturers (perhaps TSMC), and energy/power providers. OpenAI appears to be the "primary buyer" of resultant fabricated AI chips, with manufacturing services also offered to other clients. The scale of such an endeavor is put into perspective by WSJ's analysis (via inside sources): "Such a sum of investment would dwarf the current size of the global semiconductor industry. Global sales of chips were $527 billion last year and are expected to rise to $1 trillion annually by 2030. Global sales of semiconductor manufacturing equipment—the costly machinery needed to run chip factories—last year were $100 billion, according to an estimate by the industry group SEMI."

OpenAI is reported to be initiating R&D on a proprietary AI processing solution—the research organization's CEO, Sam Altman, has commented on the in-efficient operation of datacenters running NVIDIA H100 and A100 GPUs. He foresees a future scenario where his company becomes less reliant on Team Green's off-the-shelf AI-crunchers, with a deployment of bespoke AI processors. A short Reuters interview also underlined Altman's desire to find alternatives sources of power: "It motivates us to go invest more in (nuclear) fusion." The growth of artificial intelligence industries has put an unprecedented strain on energy providers, so tech firms could be semi-forced into seeking out frugal enterprise hardware.

The Financial Times has followed up on last week's Bloomberg report of OpenAI courting investment partners in the Middle East. FT's news piece alleges that Altman is in talks with billionaire businessman Sheikh Tahnoon bin Zayed al-Nahyan, a very well connected member of the United Arab Emirates Royal Family. OpenAI's leadership is reportedly negotiating with TSMC—The Financial Times alleges that Taiwan's top chip foundry is an ideal manufacturing partner. This revelation contradicts Bloomberg's recent reports of a potential custom OpenAI AI chip venture involving purpose-built manufacturing facilities. The whole project is said to be at an early stage of development, so Altman and his colleagues are most likely exploring a variety of options.

OpenAI CEO, Sam Altman, had a turbulent winter 2023 career moment, but appears to be going all in with his company's future interests. A Bloomberg report suggests that the tech visionary has initiated a major fundraising initiative for the construction of OpenAI-specific semiconductor production plants. The AI evangelist reckons that his industry will become prevalent enough to demand a dedicated network of manufacturing facilities—the U.S. based artificial intelligence (AI) research organization is (reportedly) exploring custom artificial intelligence chip designs. Proprietary AI-focused GPUs and accelerators are not novelties at this stage in time—many top tech companies rely on NVIDIA solutions, but are keen to deploy custom-built hardware in the near future.

OpenAI's popular ChatGPT system is reliant on NVIDIA H100 and A100 GPUs, but tailor-made alternatives seem to be the desired route for Altman & Co. The "on their own terms" pathway seemingly skips an expected/traditional chip manufacturing process—the big foundries could struggle to keep up with demand for AI-oriented silicon. G42 (an Abu Dhabi-based AI development holding company) and SoftBank Group are mentioned as prime investment partners in OpenAI's fledgling scheme—Bloomberg proposes that Altman's team is negotiating a $8 to 10 billion deal with top brass at G42. OpenAI's planned creation of its own foundry network is certainly a lofty and costly goal—the report does not specify whether existing facilities will be purchased and overhauled, or new plants being constructed entirely from scratch.

Over the past few days, the OpenAI drama has continued to give more details about the relationship between OpenAI's board, employees, and even the executive layer of the company. As we have covered previously, the OpenAI board on last Friday, November 17, fired the company's CEO, Sam Altman. Over the weekend, Mr. Altman was approached by Microsoft CEO Satya Nadella and offered to lead the AI unit within the Redmond giant; however, the employment was not yet finalized. Today, we learned that Sam Altman has reached an agreement with the board to return to OpenAI along with Greg Brockman and many other OpenAI employees.

After starting a wave of posts on the X/Twitter platform saying, "OpenAI is nothing without its people," the employees of OpenAI signed a letter requesting the board to bring back Sam Altman. With the deal now happening, employees are expected to continue working for OpenAI under Sam Altman's leadership. The new initial board of OpenAI is composed of Bret Taylor (Chair), Larry Summers, and Adam D'Angelo. Sam Altman said in a post on X: "i love openai, and everything i've done over the past few days has been in service of keeping this team and its mission together. when i decided to join msft on sun evening, it was clear that was the best path for me and the team. with the new board and w satya's support, i'm looking forward to returning to openai, and building on our strong partnership with msft." While Microsoft CEO Satya Nadella added "We are encouraged by the changes to the OpenAI board. We believe this is a first essential step on a path to more stable, well-informed, and effective governance. Sam, Greg, and I have talked and agreed they have a key role to play along with the OAI leadership team in ensuring OAI continues to thrive and build on its mission. We look forward to building on our strong partnership and delivering the value of this next generation of AI to our customers and partners."

On Friday, the AI world was caught by storm as the board of directors of OpenAI, the maker of ChatGPT and other AI software, fired its CEO, Sam Altman. According to multiple sources reporting the state of OpenAI, Sam Altman was stunned by the board's decision of his removal, where the company published a public statement with many remarks, primarily informing the public that "Mr. Altman's departure follows a deliberative review process by the board, which concluded that he was not consistently candid in his communications with the board, hindering its ability to exercise its responsibilities. The board no longer has confidence in his ability to continue leading OpenAI."

After Sam Altman's leave, Greg Brockman, president and co-founder of OpenAI, announced that he was also leaving the company. Satya Nadella, CEO of Microsoft, and other investors have stepped in to lead negotiations between the OpenAI board and Sam Altman to return to his position as the CEO of the non-profit company. However, according to The Information, Sam Altman will not be returning as the CEO, and instead, Emmett Shear will be appointed as the interim CEO of OpenAI. It is also reported that the departure of Sam Altman is now being followed by three senior researchers, Jakub Pachocki, Aleksander Madry, and Szymon Sidor, who have left the company to follow Sam Altman's next adventure. They wanted to go back to OpenAI if Mr. Altman would return; however, with Emmett Shear now being appointed as interim CEO, the company is in shambles with its senior staff employment in question.Update 15:30 UTC: Sam Altman has joined Microsoft alongside Greg Brockman to lead Microsoft's advanced AI research efforts; additionally with hundreds of OpenAI staff wanting to do projects under Sam Altman's lead. Apparently there are 700 members of staff, and 505 of them plan to follow Mr. Altman and Mr. Brockman under Microsoft's wing.