Sam Altman, the CEO of OpenAI and a key figure in the global spread of generative AI sparked by ChatGPT, is visiting South Korea on Jan. 26. This visit follows his recent proposal to shake up the industry with the establishment of a global AI semiconductor production network.
According to the semiconductor industry on Jan. 25, Altman is expected to meet with top executives from South Korea’s leading semiconductor companies, including Kyung Kye-hyun, [resident of Samsung Electronics’ DS Division, and Kwak No-jung, president of SK hynix, during his visit. The focus of the discussions is anticipated to be on artificial intelligence (AI) semiconductors and High Bandwidth Memory (HBM), among other topics.
Altman’s itinerary in South Korea includes a tour of Samsung Electronics’ Pyeongtaek semiconductor plant with President Kyung Kye-hyun. The Pyeongtaek facility, known for its massive scale, is the world’s largest semiconductor manufacturing plant and represents the pinnacle of Samsung’s semiconductor manufacturing capabilities. It was also the first destination of U.S. President Joe Biden during his visit to South Korea in 2022.
Additionally, Altman is scheduled to meet with executives from SK hynix, a leader in the HBM sector. While a visit to the Icheon plant is not on the agenda, a meeting with the management team is expected to take place at an undisclosed location. Although there was speculation about a possible meeting with SK Group Chairman Chey Tae-won, the plans have been adjusted to focus on meetings with the top executives overseeing the actual business operations.
Altman’s visit is being conducted under tight security with very limited information being shared internally within the semiconductor companies. “It’s difficult to confirm the specifics,” said an industry insider, highlighting the confidential nature of the discussions.
International media outlets like Financial Times and Bloomberg have reported that Altman is in talks with major global foundries for the production of OpenAI’s proprietary AI chips. The development and operation of generative AI requires the processing of vast amounts of data at high speeds, necessitating low-power design. Currently, Nvidia virtually monopolizes the AI chip market, despite high prices and supply shortages.
For South Korean semiconductor companies, the potential production of OpenAI’s dedicated chips presents a significant opportunity. Samsung Electronics, which is chasing the world’s top foundry, TSMC, is in dire need of securing large clients. With competition in the HBM market expected to intensify starting this year, SK hynix also stands to benefit from acquiring new major clients.
South Korea could prove to be an ideal partner for OpenAI, offering solutions for design, foundry, and memory issues in one package while also avoiding the risks associated with U.S.-China tensions.
Moreover, Altman is reportedly exploring locations for a new AI semiconductor factory or cooperating with one. According to The Washington Post, citing anonymous sources, “Sam Altman discussed with U.S. congress members the construction of a new chip factory to increase the global supply of advanced computer chips needed for training and running AI programs.” The sources suggested that OpenAI is considering either collaborating with foundries or building a new factory altogether, with the potential for the latter to operate in a manner similar to Apple’s significant investment in TSMC to secure its semiconductor supply.
The Washington Post also noted that Altman believes the importance of chips for economic and technological advancement will grow as AI evolves, leading him to spearhead plans to raise possibly trillions of dollars from investors worldwide. Altman has previously discussed investment opportunities with entities such as Japan’s SoftBank, UAE’s AI company G42, and prominent Silicon Valley venture capitalists.