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OpenAI Contemplates In-house Chip Production Amid Global Shortage

Algoine News
Summary:
OpenAI is reportedly considering insourcing the production of processing chips amid a global shortage. The firm is deliberating various solutions including potential acquisitions and bolstering relationships with current suppliers like NVIDIA. If OpenAI initiates in-house manufacturing, it would follow other big tech firms like Google and Amazon. The decision comes in light of the soaring demand for specialized AI chips since the launch of ChatGPT, OpenAI's chatbot.
As the global scarcity of processing chips continues, OpenAI, the parent company of AI chatbot ChatGPT, is allegedly contemplating the manufacture of such chips. Based on a Reuters report on 5th October, reliable sources speculated that OpenAI has even considered the acquisition of an anonymous company to fulfill its chip manufacturing aspirations. However, the decision to proceed with this acquisition remains uncertain. OpenAI is internally debating numerous other solutions to the ongoing chip shortage. These alternatives range from reinforcing its relationship with primary chip supplier NVIDIA, to broadening its base of chip providers. Sam Altman, OpenAI's CEO, previously expressed frustration at the dents created by chip shortages in the company’s progress during an address to an AI developers gathering, as observed in a blog penned by Raza Habib, CEO of the AI firm Humanloop. This blog has since been removed. Related: Meta is configuring an AI model to compete with OpenAI’s most robust system. Habib noted, "OpenAI's current GPU limitations have postponed many of their imminent plans." If the company chooses to fabricate its own chips, OpenAI will join an exclusive league of tech moguls, such as Google and Amazon, which have already insourced chip production. The public introduction of ChatGPT in November of the previous year has caused the demand for specialized AI chips to soar. NVIDIA, consequently, has seen a valuation boom as companies attempting to develop AI tools are eager to invest in the valuable hardware. OpenAI has not immediately commented on this report at this time. AI Eye: Practical AI applications in cryptocurrency, Google's GPT-4 competition, AI advantage for underperforming employees.

Published At

10/6/2023 4:04:34 AM

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