March 27, 2024
OpenAI Explores In-House Production of AI Chips

OpenAI Explores In-House Production of AI Chips

According to an Oct. 5 Reuters report, OpenAI, the company behind artificial intelligence chatbot ChatGPT, is exploring the possibility of manufacturing processing chips in-house due to the global shortage of expensive and challenging-to-produce hardware.

OpenAI has even considered an unnamed company as a potential acquisition target to assist in its AI chip manufacturing endeavors, although a decision on this acquisition has not been made yet. The company is actively discussing several options to address the current chip shortage.

These options include developing its own chips, strengthening its collaboration with its current primary chip supplier NVIDIA, and diversifying its chip suppliers beyond the current ones.

Earlier this year, OpenAI’s founder and CEO, Sam Altman, expressed concerns about chip shortages affecting the company’s progress during a discussion with AI developers. Raza Habib, the CEO of AI firm Humanloop, mentioned in a now-deleted blog post that “currently OpenAI is extremely GPU-limited and this is delaying a lot of their short-term plans.”

If OpenAI proceeds with its reported plan to manufacture its own chips, it will join a select group of tech industry giants, such as Google and Amazon, that have taken chip production in-house.

Since the public launch of ChatGPT in November last year, there has been an unprecedented surge in demand for specialized AI chips. This surge in demand has led to a significant increase in NVIDIA’s share price, as companies seeking to develop AI applications rush to acquire the expensive computing hardware.

Image by Freepik

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