In the wake of recent revelations surrounding OpenAI’s potential $51 million investment in Rain AI, ethical and security concerns have been raised. The 2019 agreement between OpenAI and Rain AI, a startup developing neuromorphic processing units (NPUs), includes a non-binding commitment from OpenAI to purchase AI chips worth $51 million from Rain AI once developed. The agreement has come under scrutiny due to Sam Altman’s personal investment of over $1 million in Rain AI at the time while overseeing OpenAI.

Rain AI is working on NPUs designed to emulate the human brain, claiming enhanced computing power and energy efficiency compared to traditional GPUs. The deal was part of OpenAI’s efforts to secure advanced technology for its AI projects, but Altman’s personal investment has sparked concerns about potential conflicts of interest.

Founded in 2017, Rain AI focuses on AI chip technology, initially targeting edge devices like phones, drones, cars, and robots. The startup’s NPUs, based on the RISC-V open-source architecture, aim to handle both training machine algorithms and running them post-deployment, representing a significant advancement.

Security concerns have been raised due to Rain AI’s funding and investment background. The U.S. Committee on Foreign Investment (CFIUS) intervened when a Saudi Arabia-affiliated fund invested in Rain AI, leading to mandated divestment and reshuffling of the startup’s leadership. CFIUS’s involvement underscores national security risks associated with foreign investments in critical technology sectors.

The forced divestment and leadership changes may potentially impact Rain AI’s progress in bringing its chip technology to market, affecting OpenAI’s ability to leverage the technology for its AI projects. The situation raises questions about the ethical considerations of collaborations between AI research organizations and startups with complex funding histories, emphasizing the need for transparency and careful scrutiny in such partnerships.