OpenAI, the innovative force behind ChatGPT, is considering a strategic move into the realm of artificial intelligence chip development. According to insiders, the company has even assessed the possibility of acquiring a suitable candidate for this venture.
While OpenAI has not made a final decision on this matter, recent internal discussions have revolved around tackling the shortage of expensive AI chips, which the company heavily relies on. Their potential solutions include the creation of their own AI chips, strengthening collaborations with established chipmakers like Nvidia, and diversifying their supplier base beyond Nvidia.
Although OpenAI has chosen to remain tight-lipped about these developments, CEO Sam Altman has made it clear that acquiring more AI chips is a top priority. He has publicly expressed concerns about the scarcity of graphics processing units (GPUs), a market currently dominated by Nvidia with over 80% global market share in chips suited for AI applications. Altman’s concerns center around the shortage of advanced processors crucial for OpenAI’s software and the substantial costs associated with the hardware necessary to power their initiatives and products.
Since 2020, OpenAI has been harnessing its generative artificial intelligence technologies on a colossal supercomputer, generously provided by Microsoft, one of its major supporters. This supercomputer employs a staggering 10,000 of Nvidia’s GPUs.
However, running ChatGPT comes at a substantial expense for the company, with each query costing approximately 4 cents, according to analysis by Bernstein analyst Stacy Rasgon. If ChatGPT queries were to reach a scale comparable to Google search, it would initially necessitate around $48.1 billion worth of GPUs and approximately $16 billion worth of chips annually to sustain its operation.
OpenAI’s consideration of developing its own AI chips would place it among a select group of major tech players, including Google and Amazon, who have taken strides to design chips fundamental to their businesses.
The decision to pursue custom chip development remains uncertain and would require significant strategic planning and substantial investments, potentially amounting to hundreds of millions of dollars annually, as industry experts suggest. However, such an initiative does not guarantee success. An alternative approach considered by OpenAI involves the acquisition of a chip company, a strategy previously employed by Amazon with its acquisition of Annapurna Labs in 2015.
OpenAI’s exploration of this path reached a stage where due diligence was performed regarding a potential acquisition target. The identity of this company remains undisclosed.
In summary, OpenAI is contemplating a strategic move into AI chip development, with the aim of addressing the shortage of crucial AI chips. While no final decision has been made, this endeavor represents a significant step that could shape the future of OpenAI’s technology landscape.
