US forces Saudi-backed fund to exit Sam Altman’s AI startup amid tech-transfer concerns
Story highlights
In October this year, concerns were raised that China was accessing advanced US AI tech through nations like Saudi Arabia.
The United States reportedly forced a Saudi-backed fund to disinvest from a major Artificial Intelligence (AI) chip startup backed by OpenAI co-founder Sam Altman.
Rain Neuromorphics, a startup designing chips had raised $25 million last year from a Saudi Aramco-backed venture capital firm Prosperity7.
The startup aims to design chips that mirror how the brain works and serve companies that employ AI-powered tools.
trending now
)
India's Arshdeep Singh reveals thought process in clinical match-winning last over vs Australia in 5th T20I
)
India state election results: PM Modi's BJP scores a sweeping 3/4 in crucial test before 2024 final
)
New Zealand on edge: Suspicious packages with fake baby covered in blood found outside US, Israeli embassies
)
New York stabbing attack: Four killed in Queens neighbourhood as police shoots suspect dead
)
WI skipper Shai Hope credits MS Dhoni for match-winning 109 vs England; equals Viv Richards and Virat Kohli
)
This groundbreaking new drug is all set to increase life span of large dogs
)
Serie A: Inter Milan send warning across league with win over Napoli
)
Indian PM Modi hails four-state election results as victory of 'politics of development'
)
Italy vs Spain in Euro 2024 group stage, England handed comfort draw
)
CID star Dinesh Phadnis aka Fredericks is on ventilator support: Report
)
Cardi B makes her gorgeous runway debut at Balenciaga's pre-fall 2024 show
)
Telangana election results 2023: BRS concedes defeat, extends congratulations to Congress
)
Sameera Reddy hangs out with Catherine Zeta-Jones in Goa, shares pics from her eventful outing
)
Ranbir Kapoor's Animal is a massive hit, crosses Rs 200 crore mark worldwide
)
Ex-US ambassador to Bolivia arrested, accused of serving as an agent of Cuba: Report
The move to compel Prosperity7 to exit the US AI firm came after an intervention by the Committee on Foreign Investment in the United States.
Move taken on national security grounds
According to Bloomberg, the Saudi fund was informed last year about the Committee’s decision, a move which came in the backdrop of concerns regarding national security.
"CFIUS is committed to taking all necessary actions within its authority to safeguard U.S. national security. Consistent with law and practice, CFIUS does not publicly comment on transactions that it may or may not be reviewing," the US watchdog said in a statement.
CFIUS is an inter-agency committee which reviews foreign investments in US businesses and real estate that implicate national security concerns, Reuters reported.
USA aims to regulate global AI
The move to cut off Rain AI’s links to Saudi Arabia highlights the USA’s intentions to regulate and shape the global spread and development of advanced technologies, to maintain an edge over rivals like China.
Watch: OpenAI's CEO Shake-Up
Given this, the US expanded restrictions on the export of advanced AI chips, products of companies like Nvidia and Advanced Micro Devices, to include certain West Asian countries.
China accessing USA’s tech through West Asia
In October this year, concerns were raised that China was accessing advanced US AI tech through nations like Saudi Arabia.
China’s collaboration with the Saudis has deepened over the past years in the field of AI. Western officials have expressed long-standing anxieties regarding the increasing technology transfer between their traditional allies in the Gulf and China.
The West’s message for the West Asian nations is simple: If you want unhindered access to the US chip technology, you will have to limit AI cooperation with the communist country.
(With inputs from agencies)
)
