OpenAI Explores Chip-Making Options to Address AI Shortage
OpenAI, the company behind ChatGPT, is actively exploring chip-making options to tackle the current shortage of AI chips, according to sources familiar with the matter. OpenAI is reportedly considering multiple avenues, including manufacturing its own chips, strengthening its collaboration with existing supplier Nvidia, or seeking new suppliers. Chief Executive Sam Altman has emphasized the need to acquire more chips in order to overcome the shortage and reduce the substantial costs associated with running OpenAI’s hardware infrastructure.
Altman has raised concerns about the scarcity of advanced processors, which are vital for OpenAI’s operation, as well as the significant expenses involved in maintaining the necessary hardware. Analysts estimate that each query made to ChatGPT amounts to a cost of approximately four cents for the company. If OpenAI were to reach merely a fraction of the size of Google’s search engine, it would require a staggering $16 billion worth of chips annually to sustain its operations.
However, developing their own chips may prove to be a costly and uncertain endeavor. Facebook’s Meta has encountered challenges in its attempts to manufacture its own chips, highlighting the complexity and risks involved in such ventures. Observers suggest that OpenAI could speed up its chip acquisition process by acquiring an established chipmaker. The sources indicate that OpenAI has even conducted due diligence on one potential target, although the specific company remains undisclosed.
The demand for AI chips has skyrocketed following the launch of ChatGPT last year, with Nvidia dominating the market. This surge in demand has led OpenAI to explore various strategies to alleviate the chip shortage, ensuring the continuous availability and smooth operation of their AI products.
In summary, OpenAI is considering different approaches to overcome the shortfall in AI chips. Whether the company decides to manufacture its own chips, strengthen ties with Nvidia, or seek out new suppliers, their ultimate goal is to mitigate the scarcity and reduce the exorbitant costs associated with operating their hardware infrastructure. As the demand for AI chips continues to rise, OpenAI is actively exploring options to sustain the availability of their innovative AI products.
