OpenAI Ventures into Hardware: Developing AI Chips In-House

OpenAI, the company behind ChatGPT, is thinking about making its own special computer chips for artificial intelligence. They’re also thinking about buying a company that makes these chips because there aren’t enough of them right now.

This decision comes from the CEO, Sam Altman, who really wants to get more of these chips. It shows that AI chips are becoming more and more important, and a lot of people want them.


OpenAI Looks into Making Special AI Chips

OpenAI, the group that made ChatGPT, is seriously thinking about making its own computer chips for artificial intelligence. 

They want to do this because there aren’t enough of these chips available right now. This information comes from people who know about it, as reported by Reuters.

OpenAI is thinking about how to deal with the problem of not having enough computer chips for their artificial intelligence work, although they haven’t decided what to do yet. 

The CEO, Sam Altman, is really worried about not having enough chips, especially the ones from Nvidia, which are super important for AI. Nvidia pretty much controls most of the world’s market for these chips.

Altman is also concerned about how much it costs to run the computer systems they need for their AI software. 

Some experts say that if ChatGPT became as popular as Google search, OpenAI would need to spend around $50 billion on chips and $15 billion every year to keep it running. That’s a lot of money!

OpenAI is going forward with its plan to create its own computer chips for AI. Some experts think this would put them in the same group as big tech companies like Google and Amazon, who also make their own chips for their special needs.

But it’s important to know that this is a big and expensive project, possibly costing hundreds of millions of dollars every year. And even if they spend a lot, there’s no guarantee it will work perfectly. Making your own chips is a tough job!

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Why Does OpenAI Want New Computer Chips?

OpenAI has been using a really big computer made by Microsoft. This computer has 10,000 special chips from Nvidia that help it do its job. But using this computer to run ChatGPT is expensive.

 It costs nearly 4 cents for each question or task you ask ChatGPT to do. An expert named Stacy Rasgon from Bernstein found this out.

OpenAI’s costs are going up. If ChatGPT becomes as popular as Google search, OpenAI will need a lot of money to keep it running. Sam Altman, who leads OpenAI, sees two big problems: there aren’t enough special chips for ChatGPT, and it’s really expensive to use them.

Next Plan for ChatGPT makers? 

OpenAI is trying to get more AI computer chips. They thought about buying a company that makes these chips, like what Amazon did in 2015. But we don’t know which company they might buy. Whether they make their own chips or buy a company, it will take a few years. While they do this, they’ll still use chips from companies like Nvidia and Advanced Micro Devices. 

But since ChatGPT became popular, more people want these special AI chips. Microsoft, a big supporter of OpenAI, is also working on its own AI chip, which OpenAI is trying out. 

This might mean that OpenAI and Microsoft become less dependent on each other. However, making your own chips is really tough, and even big companies like Meta had trouble with it. Now, Meta is making a new chip for different AI jobs.

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