OpenAI Explores Developing Its Own AI Chips to Tackle Shortages: Report

RNS: OpenAI, the organization behind ChatGPT, is thinking about creating its own artificial intelligence (AI) chips. They’ve also looked into acquiring other companies, according to a Reuters report.

The reason behind this consideration is the scarcity of expensive AI chips that OpenAI relies on. CEO Sam Altman is concerned about the shortage of graphics processing units (GPUs), which are mainly made by Nvidia.

Since 2020, OpenAI has been using a massive supercomputer backed by Microsoft, equipped with 10,000 Nvidia GPUs. But getting more chips is crucial due to the high cost of running the necessary hardware.

Operating ChatGPT is expensive, with each query costing about 4 cents. To handle a large number of queries, it would require billions of dollars in GPUs and chips annually.

Even if OpenAI decides to develop its own chips, it will take several years. In the meantime, they will still rely on commercial providers like Nvidia.

This move follows similar efforts by other tech giants, like Meta and Microsoft, to create their own AI chips. Nvidia continues to dominate the market for valuable AI chips.

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