ChatGPT owner OpenAI wants to make its own AI chips - report

OpenAI, the AI startup behind ChatGPT, is reportedly exploring the possibility of creating its own high-end chips and has considered potential acquisition targets to address the shortage of expensive AI chips it relies on, according to Reuters.

While the company has not yet made a final decision, it has been discussing various options to address the chip shortage, including building its own AI chips, collaborating more closely with chipmakers like Nvidia (NASDAQ: NVDA), and diversifying its chip suppliers.

OpenAI's CEO, Sam Altman, has emphasized the need for more AI chips due to a shortage of advanced processors and the high costs associated with running the hardware required for the company's AI efforts.

Currently, OpenAI relies on Nvidia's graphics processing units (GPUs) for its AI work, but Altman has expressed concerns about the scarcity of these GPUs.

Running AI models like ChatGPT is costly, with each query estimated to cost around 4 cents. If ChatGPT queries were to reach a scale comparable to Google search, it would require a significant investment in GPUs.

OpenAI is also mulling the potential acquisition of an AI chip company. However, the specific identity of the company that OpenAI explored for acquisition purposes has not been disclosed, Reuters added.

This suggests that OpenAI was actively exploring various options to secure AI chips, including potentially acquiring a company with the necessary expertise or resources in this area. OpenAI's efforts to address this challenge reflect the growing demand for AI hardware as AI applications become more widespread.

OpenAI's main backer, Microsoft (NASDAQ: MSFT), is in the process of developing a custom AI chip

By Senad Karaahmetovic

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