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OpenAI, the company behind ChatGPT, looks on making AI chips internally: Examine

OpenAI is reportedly considering the acquisition of a chip manufacturer, with the aim of developing its own AI chips.

OpenAI, the company responsible for the AI chatbot ChatGPT, is currently exploring the possibility of producing its own processing chips due to a global shortage of these costly and complex hardware components.

According to a Reuters report on October 5th, sources familiar with the matter have revealed that OpenAI has even assessed an undisclosed company as a potential acquisition target to support its AI chip manufacturing aspirations. The company has yet to make a final decision regarding this acquisition and is also actively discussing various alternative solutions to address the ongoing chip shortage.

In addition to in-house chip production, OpenAI is considering alternatives such as strengthening its collaboration with its primary chip supplier, NVIDIA, and diversifying its sources of chip procurement beyond its current providers.

Earlier this year, Sam Altman, the founder and CEO of OpenAI, expressed frustration to a room full of AI developers about chip shortages hampering the company’s progress. This was documented in a now-deleted blog post by Raza Habib, the CEO of AI firm Humanloop. According to Habib’s post, a recurring theme during the discussion was the severe limitation imposed by the shortage of GPUs, which was impeding OpenAI’s short-term plans.

If OpenAI does proceed with its reported plan to manufacture its own chips, it will join a select group of tech industry giants, including Google and Amazon, who have opted to bring chip production in-house.

Since the public launch of ChatGPT in November of the previous year, the demand for specialized AI chips has surged significantly. This surge in demand has driven up NVIDIA’s stock price, as companies seeking to develop AI applications rush to acquire the expensive computing hardware.

At the time of writing, OpenAI had not yet responded to Cointelegraph’s request for comment.

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