OpenAI Is Exploring Making Its Own AI Chips
OpenAI, the creator of ChatGPT, is exploring the possibility of creating its own artificial intelligence chips and has considered a potential acquisition target. While the company has not yet decided to proceed, internal discussions suggest that it has considered various options to address the shortage of expensive AI chips, including building its own chips, collaborating with other chipmakers like Nvidia, and diversifying its suppliers. OpenAI has declined to comment on these developments.
OpenAI CEO Sam Altman has shifted focus to the acquisition of more AI chips due to the scarcity of graphics processing units, a market dominated by Nvidia. Altman identified two main concerns: a shortage of advanced processors for OpenAI’s software and high hardware costs. Since 2020, OpenAI has developed its generative AI technologies on a Microsoft supercomputer, which uses 10,000 Nvidia GPUs. Running ChatGPT queries is expensive, costing around 4 cents each. If ChatGPT queries grow to a tenth the scale of Google search, it would require $48.1 billion worth of GPUs and $16 billion worth of chips annually.
OpenAI’s decision to build a custom chip remains uncertain, as it would be a significant strategic initiative and a substantial investment, potentially costing hundreds of millions of dollars annually, and even if OpenAI invests resources, it doesn’t guarantee success.
(With inputs from Shikha Singh)
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