The US pushes Saudi fund to withdraw from Altman-backed AI chip firm

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The US pushes Saudi fund to withdraw from Altman-backed AI chip firm
The US pushes Saudi fund to withdraw from Altman-backed AI chip firm

The CFIUS, a U.S. watchdog for dealings having national security consequences, advised the Saudi fund to terminate its agreement with AI Chip firm at some point over the past year.

Rain Neuromorphics, a startup backed by Altman that designs AI chips that replicate how the brain works and wants to assist businesses with artificial intelligence (AI) algorithms, raised $25 million in 2022.

The Biden administration has ordered a Saudi Aramco-supported venture capital firm to sell its stake in a Silicon Valley AI chip business backed by OpenAI co-founder Sam Altman.

According to a statement, Aramco’s Prosperity7, a main investor in the $25 million round for Rain AI, sold its stakes in the business following a review by the Committee on Foreign Investment in the United States.

“CFIUS is committed to taking all necessary actions within its authority to safeguard US national security,” said the US Treasury, which controls the Committee on Foreign Investment in the United States (CFIUS) procedure. CFIUS does not publicly comment on deals that it may or may not be reviewing, in accordance with law and practice.”

The Committee on Foreign Investment in the United States (CFIUS) is an inter-agency committee that analyzes foreign investments in U.S. enterprises and real estate that raise national security issues.

The United States has taken steps that may hinder AI development in the Middle East. In August, the United States expanded its ban on shipments of advanced Nvidia (NVDA.O) and Advanced Micro Devices (AMD.O) AI chips to include some Middle Eastern countries.

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