OpenAI Considers In-House AI Chip Production Amid Global Shortage

By: Isha Das

OpenAI, the organization behind the artificial intelligence chatbot ChatGPT, is reportedly evaluating options to start manufacturing processing chips in-house. This strategic evaluation is due to the ongoing global shortage of these specialized chips, which are both expensive and challenging to produce.

An unnamed company has been assessed as a potential acquisition target by OpenAI to aid in its AI chip production aspirations. However, the company has not yet chosen to proceed with the acquisition. OpenAI is also contemplating other alternatives to combat the current chip shortage, including more intensive collaboration with its primary chip supplier NVIDIA and extending its chip suppliers beyond the current providers. Reviewing such options is crucial as these chips play a crucial role in AI application building and their demand has soared since the introduction of AI chatbots like ChatGPT.

Increasing their chip production capacity would position OpenAI among tech behemoths like Google and Amazon, which have also shifted chip production in-house. It is important to note that should OpenAI decide to progress with in-house chip production, they can expect accelerating demands due to the growing industry of artificial intelligence and automation.