ChatGPT likely to build its own AI chips

OpenAI, the maker of AI-powered chatbot ChatGPT, is said to be exploring making its own artificial intelligence chips. The company has gone as far as evaluating a potential acquisition target. Since last year, the Microsoft-backed company has discussed various options to solve the shortage of expensive AI chips that it relies on. 

These options included building its own AI chip, working more closely with other chipmakers including Nvidia and also diversifying its suppliers beyond Nvidia. 

CEO Sam Altman has made the acquisition of more AI chips a top priority for the company. He has publicly complained about the scarcity of graphics processing units, a market dominated by Nvidia, which controls more than 80% of the global market for the chips best suited to run AI applications.  

Altman has identified two major concerns when it comes to the effort of getting more chips - a shortage of the advanced processors that power OpenAI’s software and the “eye-watering” costs associated with running the hardware necessary to power its efforts and products. 

Since 2020, OpenAI has developed its generative artificial intelligence technologies on a massive supercomputer constructed by Microsoft, one of its largest backers, that uses 10,000 of Nvidia’s graphics processing units (GPUs). 

The effort to develop its own AI chips would put OpenAI among a small group of large tech players such as Alphabet’s Google and Amazon.com that have sought to take control over designing the chips that are fundamental to their businesses.