Rain AI, a San Francisco-based startup backed by OpenAI co-founder Sam Altman, has appointed a former Apple Inc. chip executive to head its hardware engineering division. The new hire is expected to play a crucial role in the company's quest to develop innovative semiconductors for artificial intelligence.

What Happened: Rain AI has named Jean-Didier Allegrucci as the head of hardware engineering, reported Bloomberg on Friday. Allegrucci, who previously contributed to the development of processors that replaced Intel Corp. in iPhones and Macs, will lead the startup's efforts to create more energy-efficient chips.

This announcement comes on the heels of another high-profile hire by Rain AI, with Amin Firoozshahian joining the company as the lead architect. Firoozshahian, who previously spent five years at Meta Platforms Inc., will collaborate with Allegrucci to drive Rain AI's hardware innovation.

Rain AI, supported by Altman and Y Combinator, is part of a growing group of startups aiming to develop new AI hardware. The company is exploring in-memory compute, a technique inspired by the human brain's functioning, which promises to reduce power consumption by processing data where it's stored.

Despite ongoing questions about the economic feasibility and environmental impact of in-memory computing, Rain AI's CEO, William Passo, is optimistic about the potential of the company's novel compute-in-memory technology to unleash the full power of today's generative AI models.

Why It Matters: Altman has a history of successful investments in early-stage companies, having acquired stakes in about 125 startups, leading to 18 successful exits. This has significantly boosted his net worth to 11 figures.

Earlier this year, Altman was reported to be in discussions with major chip manufacturers like Samsung Electronics Co. and SK Hynix Inc. regarding potential collaborations in chip production. These talks were aimed at establishing a series of factories for semiconductor production.

There was also speculation that Altman was seeking a massive $7 trillion for an AI chip project, although he dismissed these claims, urging the public not to "pay too much attention" to the report.

Moreover, Apple recently partnered with OpenAI to integrate ChatGPT into its devices, reflecting a broader industry trend toward AI integration. This collaboration, although not financially driven, aims to enhance user experience on Apple devices.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote