Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

ChatGPT owner OpenAI wants to make its own AI chips - report

EditorAmbhini Aishwarya
Published 06/10/2023, 09:42 pm
© Reuters

OpenAI, the AI startup behind ChatGPT, is reportedly exploring the possibility of creating its own high-end chips and has considered potential acquisition targets to address the shortage of expensive AI chips it relies on, according to Reuters.

While the company has not yet made a final decision, it has been discussing various options to address the chip shortage, including building its own AI chips, collaborating more closely with chipmakers like Nvidia (NASDAQ:NVDA), and diversifying its chip suppliers.

OpenAI's CEO, Sam Altman, has emphasized the need for more AI chips due to a shortage of advanced processors and the high costs associated with running the hardware required for the company's AI efforts.

Currently, OpenAI relies on Nvidia's graphics processing units (GPUs) for its AI work, but Altman has expressed concerns about the scarcity of these GPUs.

Running AI models like ChatGPT is costly, with each query estimated to cost around 4 cents. If ChatGPT queries were to reach a scale comparable to Google (NASDAQ:GOOGL) search, it would require a significant investment in GPUs.

OpenAI is also mulling the potential acquisition of an AI chip company. However, the specific identity of the company that OpenAI explored for acquisition purposes has not been disclosed, Reuters added.

This suggests that OpenAI was actively exploring various options to secure AI chips, including potentially acquiring a company with the necessary expertise or resources in this area. OpenAI's efforts to address this challenge reflect the growing demand for AI hardware as AI applications become more widespread.

 
 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.