OpenAI Mulls Custom AI Chip Development Amid Chip Shortages
OpenAI is actively exploring the possibility of developing its own custom artificial intelligence (AI) chip. According to sources familiar with the company’s discussions, the company has even evaluated potential acquisition targets. OpenAI has been exploring solutions to address the shortage of costly AI chips it relies on for its operations. These options include building its own AI chips, collaborating more closely with chipmakers like Nvidia, and diversifying its chip suppliers beyond Nvidia. The company has not made any final decision yet.
OpenAI Mulls Custom AI Chip Development Amid Chip Shortages
OpenAI’s CEO, Sam Altman, has prioritized acquiring more AI chips due to concerns about the scarcity of advanced processors and the high operational costs associated with running its AI systems. The company has been using a supercomputer built by Microsoft, which utilizes thousands of Nvidia GPUs, to develop its AI technologies.
Running ChatGPT is expensive, with each query costing approximately 4 cents. If ChatGPT’s usage scales significantly, the costs for GPUs could become substantial. OpenAI’s consideration of developing its own AI chips puts it in the company of tech giants like Google and Amazon, which have pursued chip development as a strategic initiative.
The decision to build custom chips would represent a significant investment, potentially amounting to hundreds of millions of dollars annually. Even with committed resources, success is not guaranteed. OpenAI has also explored potential acquisitions in this domain to expedite the development of its custom chips.
OpenAI has progressed to the due diligence stage for a potential acquisition. However, no final decision has been made regarding the path forward.
See Also: OpenAI’s First Developer Conference, DevDay will Held on November 6- What You Need to Know
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