OpenAI Not For Sale as They Prepare Proprietary Chip | The Gestalt IT Rundown: February 12, 2025

A group of investors, led by Elon Musk’s startup xAI and other backers, has made a $97.4 billion bid to take control of OpenAI, aiming to refocus the organization on open-source AI and safety amid rising tensions between Musk and OpenAI CEO Sam Altman over its shift to a for-profit model. Meanwhile, OpenAI is advancing its AI hardware strategy with plans to launch a custom-designed AI chip in 2024, fabricated by TSMC using 3-nanometer technology to reduce reliance on Nvidia. Initially deployed on a limited scale, the chip is designed to optimize AI model performance, with OpenAI’s expanding chip team already working on future iterations with enhanced capabilities. This and more on The Rundown.

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2:44 – Turn/River Capital Acquires SolarWinds

With its $4.4 billion acquisition of SolarWinds, Turn/River Capital seeks to take the IT management software firm private, allowing it to focus on long-term growth without the pressure of quarterly earnings. This deal aligns with a broader surge in private-equity buyouts in the software sector, driven by declining borrowing costs, and comes after SolarWinds’ turbulent past, including a major 2020 cyberattack that compromised government and corporate clients.

Read More: SolarWinds To Be Acquired By Turn/River Capital In $4.4B All-Cash Deal

Read More: Turn/River’s $4.4 Billion Acquisition of SolarWinds Could Signal More IT-Related Deals

5:21 – WEKA Restructure to Focus on AI

WEKA is restructuring its go-to-market functions to align with the rapid growth of generative AI, following a strong 2024 in which it raised $140 million in funding and surpassed $100 million in annual recurring revenue. CEO Liran Zvibel emphasizes that this strategic shift will position the company for long-term success, with plans to expand headcount by approximately 120 employees to support large-scale enterprise AI and GPU acceleration deployments.

Read More: WEKA restructures for the GenAI era

9:23 – Cisco One Silicon Shows Big at Cisco Live EMEA

Cisco Live EMEA is happening this week and Cisco has had some big announcements. The biggest news comes with investments in new service provider hardware and data center infrastructure as well. The moves appear to be positioned to help Cisco customers take advantage of AI while also offering a custom advantage. The newest platforms are all powered by Cisco’s Silicon One chips. The newest A-series and K-series CPUs help offload processing to the edge and give Cisco an opportunity to challenge merchant silicon vendors in the space. For more on this we’re going on site to Tom Hollingsworth in Amsterdam at Cisco Live for more.

Read More: Tech Field Day Extra at Cisco Live EMEA Day One

12:50 – Hammerspace is Changing the AI Training Game

Hammerspace is challenging conventional reliance on object storage for AI workloads by advocating for universal, protocol-agnostic data access instead. The company has emphasized the importance of intelligent data orchestration across various storage types, ensuring seamless access to relevant datasets without disruptive migrations. As AI adoption continues to grow, Hammerspace highlights the need for metadata-driven automation and hybrid access models to optimize performance and scalability in enterprise environments.

Read More: Hammerspace challenges object storage norms for AI

17:31 – French President to Invest $112B in AI

French President Emmanuel Macron announced $112 billion in private investments for the AI ecosystem, with funds expected to be deployed in the coming years, coinciding with Paris hosting the Artificial Intelligence Action Summit. This investment will primarily focus on AI data centers, with the country positioning itself as an ideal location for AI infrastructure due to its low-carbon electricity and stable grid, which Macron emphasized as a competitive advantage for attracting global investments.

Read More: Macron unveils $112B AI investment package, France’s answer to US’ Stargate

22:36 – Huawei Shows Revenue Growth Despite Ban

Huawei expects to meet its 2024 revenue target of ¥860 billion ($118.25 billion), marking 22% growth compared to 2023. Despite sanctions, its ICT business remains strong, its consumer sector is growing, and its smart car solutions are expanding quickly. This success is notable considering Huawei’s challenges, including the sale of its Honor brand and the difficult economic environment in China.

Read More: Huawei revenue growing fast, suggesting China’s scoffing at sanctions

26:49 – Sam Altman Says OpenAI is Not for Sale

A group of investors has made a $97.4 billion offer to take control of OpenAI, aiming to restore the organization’s focus on open-source AI and safety. The investors are led by Elon Musk’s startup xAI and several other backers. Tensions between Musk and OpenAI’s CEO Sam Altman have escalated as Musk challenges OpenAI’s shift to a for-profit model and its current management.

Read More: Musk-led investor group offers $97.4 billion for OpenAI — Altman declines

33:06 – OpenAI to Take On NVIDIA with Proprietary Chip

OpenAI is preparing to launch its own AI chip in 2024, aiming to reduce its reliance on Nvidia. The custom-designed chip, to be fabricated by TSMC using 3-nanometer technology, will focus on running AI models and will initially be deployed on a limited scale. OpenAI’s chip team, which has recently doubled in size, is also working on future versions with enhanced capabilities.

Read More: OpenAI is reportedly getting closer to launching its in-house chip

38:13 – The Weeks Ahead

Cloud Field Day 22 – February 19 – 20

Networking Field Day 37 – March 19 – 20

Gestalt IT and Tech Field Day are now part of The Futurum Group.

The Gestalt IT Rundown is your look at the IT news of the week. Be sure to subscribe to Gestalt IT on YouTube for even more weekly video content.

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