[HN Gopher] Sam Altman seeking trillions for AI chip fabrication...
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       Sam Altman seeking trillions for AI chip fabrication from UAE,
       others
        
       Author : whiteboardr
       Score  : 32 points
       Date   : 2024-02-09 18:59 UTC (4 hours ago)
        
 (HTM) web link (arstechnica.com)
 (TXT) w3m dump (arstechnica.com)
        
       | mrandish wrote:
       | $5 to $7 Trillion? Developing cutting edge chip fabrication
       | technologies is insanely expensive but that number still strikes
       | me as far too high. Unfortunately, the article doesn't go into
       | any detail on the allocation of funds for a capital raise that
       | unprecedentedly massive. I don't doubt that Altman may have cited
       | that range, my skepticism is more centered on the practical
       | possibility of productively putting that much money to work in a
       | relevant startup time frame (~five years). Maybe there's missing
       | relevant detail, like perhaps he was referencing a cumulative
       | total spend over a decade or longer.
       | 
       | Just for comparison TSMC's market cap is ~$500B, ASML (who makes
       | the cutting edge fab machines) is ~$350B. NVidia itself is ~$1.7T
       | but that also includes non-AI things. Even if you include buying
       | smaller players in addition to those, you could theoretically
       | outright own the entire relevant market for less than $3T. And
       | that's at full de-risked, retail public market price in a very
       | frothy time period. The new venture cost should be less,
       | otherwise investors would be wiser to just buy the existing
       | players with all their IP, proven know-how and market momentum.
        
         | riversflow wrote:
         | I mean I think the sales pitch in this case is literally, "Burn
         | an enormous pile of (oil) money, to gain a large but smaller
         | pile of (chip) money"
        
           | sofixa wrote:
           | > "Burn an enormous pile of (oil) money, to gain a large but
           | smaller pile of (chip) money"
           | 
           | But continue having that pile of (chip) money after the oil
           | and gas money runs out (either due to decarbonisation or due
           | literally the resources running out).
        
           | consumer451 wrote:
           | Let's assume it works. So then ultra-religious authoritarians
           | own part of AGI.
           | 
           | Sounds great!?
        
             | jacooper wrote:
             | It really doesn't change much.
        
               | consumer451 wrote:
               | Please explain. People are upset about "woke" ChatGPT,
               | because they have the comfort of that first-world
               | problem.
               | 
               | Thing is, it can actually get much worse than optimizing
               | for inclusion. Do we really want Sharia authoritarian
               | AGI?
               | 
               | Or am I misunderstanding what you are saying with your
               | terse reply?
        
         | anon373839 wrote:
         | Not to mention, you can't just throw a large pile of money
         | somewhere and create another ASML. It took them decades to get
         | EUV working, as that tech is insanely sensitive and complex.
        
       | cedws wrote:
       | This seems like a smart move. OpenAI needs to run models more
       | cheaply for profitability. He wants to start a hardware venture
       | in parallel with the goal of selling better hardware to OpenAI.
       | If it fails, it's not his money that was lost. If it succeeds, he
       | has two successful ventures on his hands.
       | 
       | Anybody know what happened to George Hotz' hardware company? Or
       | did he give up on it after 2 weeks like his Twitter frontend job?
        
       | neom wrote:
       | Yesterday: https://news.ycombinator.com/item?id=39310563
        
       | morpheos137 wrote:
       | I don't know why HN loves Sam Altman so much. Has he ever written
       | a significant piece of software or invented anything? Has he ever
       | built a significant, profitable business from the ground up? The
       | guy was a fundraiser superstar when money was easy to get in the
       | 2010s but I have yet to see technical or business competence
       | sufficient to grant him the level of respect many in this
       | community seem to grant him.
       | 
       | There are people who are technically competent or genuinely
       | intelligent who can also raise funds.
       | 
       | The guy reminds me of Elizabeth Holmes or Eliezer Yudkowski of
       | "lesswrong."
       | 
       | A sophomoric guy with minimal technical or business
       | accomplishments who is just smart enough to tell rich people what
       | they wanna hear to fuel his game.
       | 
       | There is an old term for this personality type. Snake oil
       | salesman aka con artist.
       | 
       | See https://blog.piekniewski.info/
       | 
       | For a sane take on AI by someone who actually got an education
       | and is an expert in his field.
        
         | sweeter wrote:
         | He's the new Elon Musk that people can idolize. I really don't
         | understand the obsession with corporate venture capitalist
         | vultures and trust fund babies. He's a glorified hype man. He
         | curates a positive public image and makes dubious claims about
         | the abilities of <insert new tech here> to drum up funding.
         | 
         | There is a large subset of tech oriented people who are
         | extremely susceptible to sensationalism and treat these people
         | like cult leaders to aspire to. Its just odd.
        
           | morpheos137 wrote:
           | It's the way people are wired. They need a hero to look to.
           | Now usually the outcome is better in the end when the hero is
           | genuine not a mimic. I think "show, don't tell," is a good
           | rule of thumb for judging character. It's even in the Bible
           | as a parable of Jesus something like judge a vine by its
           | fruit.
           | 
           | In the early 21st century it seems judgements of business
           | acumen have become untethered from actually making money by
           | building a real product that is in demand by the market. At a
           | certain point the game of shuffling money around as a shell
           | game will become unsustainable. That's already evidenced in
           | the high inflation rate we have.
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | More discussion yesterday:
       | https://news.ycombinator.com/item?id=39310563
        
       | maxglute wrote:
       | I can't tell if this is delusion or borderline delusional
       | highballing negotiation technique.
        
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