US compels Saudi fund to exit Altman-backed AI chip startup
Bloomberg News reports that the US government has compelled a Saudi investor to exit an AI chip startup backed by venture capitalist Sam Altman. The company, called Wave Computing, is a developer of deep learning technology and specializes in AI chip manufacturing.
Wave Computing has been one of the few AI-focused startups to be funded by Saudi investors. The Saudi investor acquired some of Wave Computing's shares in 2018, giving it a 10% stake in the company. However, the US government recently informed Wave Computing that the investor had to divest its stake due to security concerns.
According to Bloomberg News, Wave Computing is valued at around $1 billion and was selected by the US Defense Advanced Research Projects Agency (DARPA) to participate in its Electronics Resurgence Initiative (ERI). Wave Computing is also working with Microsoft, Intel, and IBM on a new chip technology called Deep Learning Accelerator (DLA), which will enable companies to deploy machine learning algorithms faster and more efficiently.
The news of the forced divestment comes as the US is trying to prevent foreign powers from acquiring sensitive AI technologies. Last year, the US Commerce Department imposed tough restrictions on US companies exporting their use of certain Chinese tech products and services.
The news of this divestment also comes amid heightened tensions between the US and Saudi Arabia over the killing of journalist Jamal Khashoggi. In response, President Trump has threatened to step up further measures against the country if it does not cooperate with the investigation into the murder.
Overall, the news that the US government has forced a Saudi investor to exit a leading AI chip startup backed by venture capitalist Sam Altman shows how seriously the US is taking the threat of foreign powers acquiring sensitive technologies. It seems that the US government is willing to take bold and drastic steps to protect its interests and ensure that foreign powers do not gain access to cutting-edge tech.
Read more here: External Link