OpenAI Plans To Make AI Chips

ChatGPT and its parent company, OpenAI, are making significant strides in the tech world, spearheading a revolution in Artificial Intelligence. However, the company has no intentions of limiting itself to the software business, as reports suggest they are venturing into AI chip production.

As of now, the company is actively seeking potential acquisition opportunities in the near future. While a final decision hasn’t been reached, recent internal discussions, as reported by Reuters, indicate their exploration of solutions to tackle the shortage of expensive AI chips that OpenAI relies on, a matter that has been under consideration for at least a year.

OpenAI has refrained from making public comments, but CEO Sam Altman expressed concerns about the scarcity of AI chips. He also noted the lack of competition in the GPU (graphics processing unit) market, with Nvidia dominating 80% of it.

ChatGPT is undeniably a costly endeavor, with each query reportedly costing 4 cents. If ChatGPT’s query volume were to reach one-tenth the scale of Google search, it would require an initial investment of approximately $48.1 billion in GPUs, along with an annual expenditure of about $16 billion on chips to sustain its operation.

While it remains uncertain whether OpenAI will directly engage in AI chip manufacturing, the possibility exists. Such an undertaking would take years, but it would undoubtedly make a significant impact in the chip manufacturing market. OpenAI’s partnership with Microsoft provides them with a valuable head start, given their ongoing chip testing activities.