OpenAI explores developing its own AI chips amid shortages

OpenAI, one of the leading AI startups, is reportedly exploring the possibility of creating its own AI chips in response to the ongoing chip shortage affecting AI model training.

Discussions within the company about AI chip strategies have been ongoing since at least last year, as the scarcity of chips capable of training AI models has worsened. OpenAI is considering various approaches to realize its chip ambitions, including acquiring an AI chip maker or launching its own chip development initiative.

OpenAI's CEO, Sam Altman, has prioritized acquiring more AI chips for the company to address the pressing shortage. Currently, OpenAI, like many other AI companies, relies on GPU-based hardware for developing models like ChatGPT, GPT-4, and DALL-E 3.

However, the rise of generative artificial intelligence models is putting great pressure on the supply chain of GPUs, causing shortages and disruptions in supply for large technology companies such as Microsoft. In addition, GPUs have a high cost.

The company's research into developing its own artificial intelligence chips follows a trend in the industry where major tech players such as Google and Amazon have already started developing their own chips to fulfill their artificial intelligence needs.

Although OpenAI is well-funded, with more than $11 billion in venture capital and annual revenues approaching $1 billion, entering the hardware market is a major undertaking that could take several years and cost hundreds of millions of dollars. The risk associated with chip development is high, and it remains to be seen whether OpenAI's investors are willing to support this ambitious endeavor.