Sam Altman, the CEO of ChtaGPT-parent OpenAI, has reportedly been in discussions with the UAE government to secure a staggering $7 trillion for an AI chip-building project. However, Vincent J. Carchidi, a non-resident scholar at the Middle East Institute's Strategic Technologies and Cyber Security Program, has insights into whether the investment in his dream vision is actually worth it or not.
What Happened: The potential investment in OpenAI’s AI chip-building project is a clear indication of the growing importance of AI in global economies. The UAE, in particular, is keen on securing a leading role in the future AI landscape, said Carchidi in his opinion piece on The Hill.
Altman’s ambitious project, however, faces skepticism due to commercial and technical challenges. His proposal was also met with criticism from industry experts.
Grady Booch, a software engineer who is renowned for co-designing the Unified Modeling Language or UML has warned that the current AI architecture may not be suitable for future AI systems. He believes that Altman’s proposal is a “clear sign that contemporary AI has chosen the wrong architecture,” the report noted.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Meanwhile, the market for AI chips is also showing signs of overheating, and the commercial adoption of generative AI is lagging behind expectations.
Clients of cloud providers such as Microsoft, AWS, and Google are exercising caution or careful consideration when it comes to ramping up expenditure on new AI services. This cautious approach stems from the substantial costs associated with running the software, its noted deficiencies in accuracy, and the challenge of gauging the anticipated value.
Similarly, the technical challenges encountered by generative AI remain significant. Hallucinations, in particular, might be an inherent aspect of the technology that can be minimized in practical settings, yet cannot be entirely eradicated.
According to Carchidi, Both governmental and private entities, such as Abu Dhabi, must exercise extreme caution when considering Altman’s suggestions.
The infrastructure of AI is closely intertwined with its architecture, including in the case of Generative AI. Therefore, any endeavor to formulate a blueprint for the infrastructure needed by future AI systems inherently faces considerable uncertainty, as these systems may adopt unfamiliar architectures, the scholar said.
Why It Matters: Altman’s $7 trillion AI chip project has been a topic of discussion for some time. In February, Altman was reported to be seeking approval from the Joe Biden administration for his ambitious plan. However, he later dismissed these claims, stating that the $7 trillion figure was speculative.
Despite the skepticism, Altman’s proposal has also garnered some support. Meta Platforms Inc. CEO Mark Zuckerberg previously acknowledged the necessity of such a plan for the future of AI, although he called the $7 trillion figure “astronomical.”
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next: Who Was Behind Sam Altman’s Ouster From OpenAI? New Reports Sheds A Light On Key Executives’ Role
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
