OpenAI Considering Development of Its Own Powerful Processor to Tackle Chip Shortage
OpenAI, the renowned developer of the ChatGPT artificial intelligence (AI) product, is exploring strategies to overcome the ongoing shortage of chips required to power its advanced technology. According to a recent media report, the company is contemplating the idea of building its own powerful processor as a potential solution.
The scarcity of specialized chips has become a pressing issue for OpenAI since the launch of its AI-based chatbot last year. To address this challenge, the company has been discussing various options, including acquiring a chip company and establishing closer partnerships with chipmakers. While industry leader Nvidia is one of OpenAI’s current suppliers, the company is also exploring collaborations with other chip suppliers besides Nvidia.
OpenAI’s CEO, Sam Altman, has identified the acquisition of additional AI chips as a top priority. Altman has previously expressed concerns about the limited availability and high costs associated with graphics processing units (GPUs), which are vital for OpenAI’s operations. However, even if OpenAI proceeds with its plan to develop its own chip, it will likely remain reliant on external providers, such as Nvidia, for several more years. Nvidia currently maintains an 80% share of the AI application processor supply.
OpenAI’s generative AI technology heavily relies on a supercomputer powered by 10,000 of Nvidia’s GPUs. This supercomputer, constructed with the support of one of OpenAI’s main backers, Microsoft, facilitates the operation of the AI assistant. Nevertheless, running the AI assistant is an expensive endeavor, with each query costing approximately $0.04.
If OpenAI decides to move forward with the development of its own AI chips, it will join a select group of tech giants that have pursued a similar strategy. Google and Amazon are among those that have sought greater control over chip design to support their business objectives. Meta, the parent company of Facebook, has also endeavored to build its own processor for its newly launched AI assistant. However, Meta faced developmental challenges and discontinued some of its prototypes. The company is currently working on a newer model.
Microsoft, a significant supporter of OpenAI’s chatbot project, is actively involved in the development of a custom AI chip. This chip is currently being tested by OpenAI, as reported by the tech-focused publication, The Information.
In conclusion, OpenAI is considering the development of its own powerful processor to address the chip shortage that is hindering its AI operations. While options such as acquiring a chip company and collaborating with chipmakers are being explored, the company will likely remain dependent on external providers like Nvidia in the short term. Building its own AI chips would place OpenAI among the select group of tech giants pursuing similar strategies.
