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Tired of shortages, OpenAI considers making its own AI chips

Arstechnica

Arstechnica · 1y ago

Tired of shortages, OpenAI considers making its own AI chips

OpenAI is reportedly considering manufacturing its own AI accelerator chips to address the shortage of specialized AI GPU chips and the high costs associated with them. The company is exploring options such as acquiring a chipmaking company or collaborating with chip manufacturers like Nvidia. OpenAI relies on Microsoft's supercomputer with 10,000 Nvidia GPUs, but the costs of running ChatGPT are significant. Developing custom AI chips would be a substantial strategic shift and financial investment for OpenAI. Microsoft, OpenAI's principal backer, is also said to be working on a custom AI chip.

Related News

Nvidia’s Big Tech rivals put their own AI chips on the table

Economic Times

Economic Times · 1y ago

Nvidia’s Big Tech rivals put their own AI chips on the table

Big tech companies like Amazon, Google, Meta, and Microsoft are investing in building their own AI chips to reduce costs, eliminate shortages, and challenge NVIDIA's dominance in the AI chip market. While NVIDIA is the leader in AI chip sales, the tech giants are looking to control their own destiny by creating their own chips. However, they continue to work closely with NVIDIA and maintain partnerships with the chipmaker, ensuring they still offer its chips alongside their own. The AI chip market is projected to double by 2027, reaching around $140 billion.

OpenAI’s secret weapon against Nvidia dependence takes shape

Arstechnica

Arstechnica · 6m ago

OpenAI’s secret weapon against Nvidia dependence takes shape

OpenAI is developing its first custom AI chip to reduce dependency on Nvidia. Partnering with TSMC for production, the chip aims primarily at running AI models rather than training. Led by former Google chip designer Richard Ho, the $500 million project may start mass production in 2026. OpenAI joins tech giants like Microsoft, Amazon, and Google in creating proprietary chips to reduce costs and tackle shortages of Nvidia GPUs.

Sam Altman wants to solve the great AI chip shortage himself

Business Insider

Business Insider · 1y ago

Sam Altman wants to solve the great AI chip shortage himself

OpenAI CEO Sam Altman is reportedly pitching heavyweight investors to back a new AI chip venture. The plan involves designing chips and setting up a network of fabrication plants to manufacture them. Altman aims to gain more control over OpenAI's chip supply and become vertically integrated, unlike tech companies that rely on third-party suppliers. The plan is costly and challenging but has already garnered interest for its potential to meet the growing demand for AI chips. Currently, shortages of AI chips have caused significant issues for companies, with demand outstripping supply.

OpenAI’s secret weapon against Nvidia dependence takes shape

Arstechnica

Arstechnica · 6m ago

OpenAI’s secret weapon against Nvidia dependence takes shape

OpenAI is developing its first custom AI processor to reduce reliance on Nvidia hardware. The chip, designed by former Google designer Richard Ho and a team of engineers, will be produced by TSMC. It's focused on running AI models rather than training them and is expected to begin mass production by 2026. This move aligns with similar efforts by other tech giants to develop AI chips, aiming to cut costs and mitigate hardware shortages.

China offers AI computing ‘vouchers’ to its underpowered start-ups

Techradar

Techradar · 1y ago

China offers AI computing ‘vouchers’ to its underpowered start-ups

China is introducing a new initiative to support AI startups by providing cloud computing vouchers to help them overcome chip shortages and reduce the financial burden of building their own data centers. The vouchers, valued between $140,000 and $280,000, will enable AI businesses to access essential infrastructure such as data centers for training and running AI models. This move comes in response to chip shortages caused by geopolitical tensions and US restrictions. In addition, there are reports of potential subsidies for AI groups using domestic chips to reduce reliance on foreign companies. However, questions remain about the sustainability of China's AI growth given the ongoing chip shortage.

Nvidia Chip Shortages Leave AI Startups Scrambling for Computing Power

Wired · 2y ago

Nvidia Chip Shortages Leave AI Startups Scrambling for Computing Power

Trimming profits, delaying launches, begging friends. Companies are going to extreme lengths to make do with shortages of GPUs, the chips at the heart of generative AI programs.

New Developments in AI: The Rising Demand for Custom Chips in the Generative AI Field

Robots · 1y ago

New Developments in AI: The Rising Demand for Custom Chips in the Generative AI Field

The demand for custom AI chips is growing due to a hardware shortage caused by the rise in generative AI. Startups like d-Matrix offer cost-effective alternatives to GPU-based solutions, potentially leveling the playing field for smaller companies in the AI industry. Major players like Microsoft, Amazon, and Meta are also investing in their own in-house AI chips for inferencing. Additionally, AI is making progress in fields like drone racing, scent quantification, wildlife tracking, healthcare, and language models, showcasing its diverse applications across industries.

AMD unveils AI server as OpenAI taps its newest chips

Economic Times

Economic Times · 2m ago

AMD unveils AI server as OpenAI taps its newest chips

Advanced Micro Devices (AMD) revealed a new AI server called Helios, set for 2026, aiming to rival Nvidia's offerings. This launch is part of AMD's broader strategy to compete in the AI chip market. OpenAI CEO Sam Altman confirmed his company will adopt AMD's latest chips. AMD is also enhancing its AI software and making strategic acquisitions to strengthen its position against Nvidia, highlighting a shift towards open collaboration in AI development.

Microsoft likely to unveil its first AI chip next month to cut Nvidia GPU costs

Economic Times

Economic Times · 1y ago

Microsoft likely to unveil its first AI chip next month to cut Nvidia GPU costs

Microsoft is expected to reveal its first artificial intelligence (AI) chip next month, a move that could reduce its reliance on Nvidia's GPUs. The AI chip, codenamed Athena, is designed for data center servers, similar to Nvidia GPUs currently used by Microsoft. OpenAI, a company backed by Microsoft, is also reportedly looking to develop its own AI chips due to concerns about limited availability and high costs of existing hardware. Microsoft's flagship Ignite conference is scheduled from November 14-17.

Eye on AI: Apple’s chip game, Meta's GenAI tools for advertisers and other top developments

Economic Times

Economic Times · 1y ago

Eye on AI: Apple’s chip game, Meta's GenAI tools for advertisers and other top developments

Apple will integrate its AI chips into data centers to power advanced AI features on its devices. The company also introduced the M4 chip in the new iPad Pro, making it a powerful device for artificial intelligence. Meta, the parent company of Facebook and Instagram, launched enhanced generative AI features for advertisers, allowing them to create full image variations and text overlays. OpenAI joined the steering committee of the C2PA, a digital content authentication standard. US lawmakers introduced a bill to restrict exports of AI models to prevent them from falling into the wrong hands. Microsoft and OpenAI launched a $2 million fund for AI literacy for voters.

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