OpenAI Explores Building Its Own AI Chipsets and Considers Acquisition
OpenAI, the company responsible for the development of the widely popular ChatGPT, is reportedly contemplating designing its own chipsets specifically tailored for their AI infrastructure. This move comes as OpenAI aims to address the challenges associated with the costly chipsets required to power their artificial intelligence ambitions. While OpenAI is still in the planning stage and has not made a final decision, they have begun exploring potential avenues, including a potential acquisition.
According to reports from Reuters, OpenAI is considering partnering with industry giants like NVIDIA to overcome the chip shortages currently faced. However, it is worth noting that OpenAI CEO Sam Altman has previously expressed the difficulties the company encounters when sourcing GPUs, which are essential for running their infrastructure. NVIDIA currently dominates this market, but OpenAI is open to diversifying beyond their partnership if it proves necessary.
In addition to tackling supply chain constraints, OpenAI’s potential foray into developing its own chipsets could also help reduce operational costs. The expenses associated with running ChatGPT have been substantial for the company. An analysis conducted by Bernstein analyst Stacy Rasgon revealed that each query costs approximately 4 cents. If ChatGPT’s queries were to increase to a scale equivalent to one-tenth of Google search, OpenAI would require an initial investment of roughly $48.1 billion worth of GPUs, along with an annual expenditure of approximately $16 billion on chips to sustain operations.
Earlier this year, SemiAnalysis disclosed to The Information that OpenAI might be spending as much as $700,000 per day. As the company gradually transitions from GPT 3.5 LLM (the currently freely accessible version ChatGPT operates on) to GPT-4, OpenAI’s expenses are likely to surge even further, posing additional financial challenges.
As OpenAI ponders the prospect of developing its own chipsets, their intention is aligned with the pursuit of more affordable and sustainable AI infrastructure. While the company is considering various options, including collaborating with established players like NVIDIA, their strategy may evolve as they navigate the intricacies of the market. The ultimate goal for OpenAI is to strike a balance between cost-efficiency and technological advancement to drive their AI-driven initiatives forward.
As OpenAI continues to shape the future of artificial intelligence, this potential shift in chipsets highlights the complexity of the industry and the challenges faced by key players. Nevertheless, it also serves as a testament to OpenAI’s determination to overcome these obstacles, redefine their infrastructure, and lead the way in AI innovation.
