Sam Altman, the CEO of OpenAI, is actively seeking investments for a new semiconductor company, Rain AI, which is positioned as a competitor to the industry leader Nvidia. This effort comes as Nvidia strengthens its business ties with Elon Musk. Currently, Altman is focused on securing a $150 million Series B funding round for Rain AI, which would value the company at approximately $600 million. Altman was a significant investor during Rain AI’s initial $25 million seed round in 2022. The new funding round is expected to start next month, and Altman has been introducing Rain AI to his network of investors. According to sources, Rain AI claims its chips are more energy-efficient and powerful than those of Nvidia. Recently, the company appointed Jean-Didier Allegrucci, a former Apple chip executive, as the head of hardware engineering.

Currently, both OpenAI and Rain AI have declined to comment on the matter. Altman's push for Rain AI coincides with Musk engaging with Nvidia to potentially invest in his venture, xAI. Despite Nvidia's dominant 85% market share in AI chips and its status as the most valuable company globally, Altman may be wary of Nvidia's growing closeness with Musk. CNBC reports that Musk plans to purchase 100, 000 Nvidia chips, a deal worth billions. Wedbush Analyst Dan Ives noted that Rain AI is a legitimate contender in the AI and chip industry, emphasizing the excitement surrounding the company’s innovations. He suggested that the AI field has room for numerous players beyond Nvidia and its CEO Jensen Huang. According to Ives, Altman's endorsement of Rain AI brings significant attention and credibility, akin to being spotlighted in Times Square. Altman's support is seen as a strong vote of confidence, offering Rain AI a substantial opportunity for growth.