From Yahoo Finance: 2025-05-24 08:31:00

Rain AI, a chip startup backed by Sam Altman, is exploring a sale after its $150 million Series B funding round failed to secure investors. The company aimed to rival Nvidia with energy-efficient chips but couldn’t secure major contracts, leading to investor confidence issues. Talks with potential buyers, including OpenAI, are ongoing.

Rain AI’s co-founder, Jack Kendall, stated the company urgently needed a $3 million bridge fund to sustain operations. Emergency funding was secured, and acquisition talks with interested parties are progressing well. High-profile tech firms are considering Rain AI’s hardware as a strategic foothold in the competitive chip market.

The company hired Jean-Didier Allegrucci, a former Apple veteran, to lead chip development efforts. Rain AI’s original CEO, Will Passo, stepped down for personal reasons, and Kendall has taken over. The uncertain future of Rain AI comes amid aggressive expansion in the AI hardware ecosystem by giants like Nvidia, Elon Musk’s xAI, Microsoft, and BlackRock.

Although Rain AI didn’t achieve its original vision, its core technology and team remain valuable assets. Multiple technology giants are discussing potential acquisitions, with OpenAI being a top contender. Rain AI’s situation highlights the intense competition in the AI hardware market and the value of innovative technology and talent.



Read more at Yahoo Finance: Rain AI Faces Sale As OpenAI, Nvidia, And Microsoft Circle The Wreckage