OpenAI, the organization behind ChatGPT, is reportedly considering in-house chip manufacturing to address the global shortage of AI processing chips. The company is exploring options, including potential acquisitions of chip-making firms, to enhance its chip production capabilities. OpenAI has faced delays in its projects due to chip shortages and is evaluating various strategies, such as working closely with its current primary chip supplier NVIDIA and diversifying chip suppliers.
OpenAI Explores In-House Chip Manufacturing Amid Global Shortage
OpenAI, the organization behind ChatGPT, is reportedly considering in-house chip manufacturing to address the global shortage of AI processing chips. The company is exploring options, including potential acquisitions of chip-making firms, to enhance its chip production capabilities. OpenAI has faced delays in its projects due to chip shortages and is evaluating various strategies, such as working closely with its current primary chip supplier NVIDIA and diversifying chip suppliers.
An October 5 Reuters report, citing sources familiar with the matter, revealed that OpenAI is contemplating manufacturing its own processing chips amid the challenging global shortage of these specialized components. The shortage has affected various industries, and companies are exploring different strategies to ensure a stable supply of chips.
OpenAI is said to have evaluated an unnamed chip-making company as a potential acquisition target to support its ambitions of in-house chip production. However, the company has not made a final decision on whether to proceed with the acquisition. Besides in-house chip manufacturing, OpenAI is internally discussing other options to address the current chip shortage.
These options include working more closely with its primary chip supplier, NVIDIA, and exploring the possibility of diversifying chip suppliers beyond its current providers. The company is navigating the complex landscape of chip shortages to ensure a reliable and sufficient supply for its AI-related projects.
Earlier this year, OpenAI's CEO, Sam Altman, expressed concerns about chip shortages affecting the company's progress. The shortage of specialized AI chips has led to increased demand, contributing to the surge in NVIDIA's share price as companies seek computing hardware for AI applications.
If OpenAI proceeds with the reported plan to manufacture its own chips, it would join a select group of major tech companies, such as Google and Amazon, that have opted for in-house chip production to address supply chain challenges and meet specific computing requirements.
OpenAI has not provided an official response or comment on the reported exploration of in-house chip manufacturing. The potential move reflects the broader challenges faced by organizations dependent on specialized chips amid a global shortage impacting various industries.
(TOM MITCHELHILL, COINTELEGRAPH, 2023)