OpenAI looking at producing AI chips in-house: Report


OpenAI, the company behind artificial intelligence chatbot ChatGPT, is exploring the possibility of manufacturing processing chips in-house amid a global shortage of expensive and difficult-to-produce hardware.

On October 5 Reuters report Citing people familiar with the matter, OpenAI has even evaluated an unnamed company as a potential target for an acquisition to help it with its AI chip manufacturing ambitions.

The company has not yet decided whether to move forward with the acquisition. OpenAI has also been internally discussing other options to address the current chip shortage.

In addition to building its own chips, options include working more closely with its current primary chip supplier, NVIDIA, and diversifying chip suppliers beyond its current suppliers.

Earlier this year, OpenAI founder and CEO Sam Altman complained to a room full of AI developers that chip shortage were slowing down his company's progress, according to a now-deleted blog mail written by Raza Habib, CEO of artificial intelligence company Humanloop.

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"A common theme that emerged throughout the discussion was that OpenAI is currently extremely GPU limited and this is delaying many of its near-term plans," Habib wrote.

If OpenAI goes ahead with its reported plan to make its own chips, it will join a small group of tech industry heavyweights, including Google and Amazon, that have moved chip production in-house.

Since the public launch of ChatGPT in November last year Demand for specialized AI chips has skyrocketed..

The ensuing wave of demand has seen The rise in NVIDIA stock price while companies looking to create AI applications clamor to buy the expensive computing hardware.

OpenAI did not immediately respond to Cointelgraph's request for comment.

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