ChatGPT maker OpenAI plans to start making its own AI chips. Here’s why it’s important – Crypto News – Crypto News
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ChatGPT maker OpenAI plans to start making its own AI chips. Here's why it's important ChatGPT maker OpenAI plans to start making its own AI chips. Here's why it's important

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ChatGPT maker OpenAI plans to start making its own AI chips. Here’s why it’s important – Crypto News

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ChatGPT maker OpenAI is looking to manufacture its own artificial intelligence chips that are required to run the hugely popular chatbot. According to a Reuters report, OpenAI is exploring the option to manufacture its own chipset and is even evaluating a potential acquisition target. 

The report notes that OpenAI is not decided yet finalized the move but the company has been discussing on various options to resolve the AI chip shortage.  OpenAI is focusing on diversifying its suppliers beyond Nvidia and working with other chip manufacturers. The company is also testing a custom chipset developed by its biggest backer Microsoft. 

Why does OpenAI need new chipset? 

OpenAI has been using a massive supercomputer developed by Microsoft that uses 10,000 Nvidia Graphics Processing Units (GPUs), noted Reuters. However, running ChatGPT is an expensive affair for the company costing almost 4 cents per query, according to Bernstein analyst Stacy Rasgon. 

Additionally, the costs for OpenAI are only expected to rise for instance if ChatGPT gets to even 1/10th of the queris of Google search, the Sam Altman-led company will require almost $48.1 billion worth of GPUs and around 16 billion worth of chips each year for keeping itself operational.

The Reuters report noted that Sam Altman has realized two major concerns- shortage of the current AI chips powering ChatGPT and the  high costs associated with the process of running them

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Updated: 06 Oct 2023, 12:16 PM IST

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