Rain AI, a San Francisco startup focused on developing advanced energy-efficient chips, is exploring a sale following the collapse of its $150 million Series B fundraising efforts. Sam Altman, a key investor in Rain, may push for an OpenAI acquisition as an exit strategy. Co-founder Will Passo has stepped down as CEO amid difficulties in securing funding. Rain aims to raise a $3 million bridge loan for operational continuity while engaging with substantial tech companies looking to enter the chip market.
"Sam Altman is looking to bail out his investment by having OpenAI acquire Rain for pennies," a source close to the situation told The Post.
Kendall confirmed that it had proven difficult for the company to close a Series B that would allow it to compete with industry giants like Nvidia and that, instead, Rain had pivoted to a search for a buyer.
They are in active conversations with suitors," the source said. "These are major, major technological companies that are looking to compete in the chip space.
Kendall said Passo had stepped down for personal reasons and that his exit had impacted the firm's ability to raise its Series B.
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