ChatGPT Owner OpenAI Seeking to Develop Its Own AI Chips

<p>Are we witnessing the next big shake-up in the tech universe? OpenAI,
the company behind ChatGPT, is exploring a bold new venture – developing its
own <a href="https://www.financemagnates.com/terms/a/artificial-intelligence-ai/">artificial intelligence </a>(AI) chips. This move comes as a response to the
scarcity of AI chips that OpenAI relies on to power its projects. While it's
still in the exploratory phase, it's a daring move for a company typically
known for its software innovations.</p><p>We’ll also address the elephant in the room. Nvidia, one of the major
players, has long been known for <a href="https://www.digitaltrends.com/computing/gpu-prices-2020-vs-2023-compared/">inflating
the price of cards and chips across the board</a>. Because they can. The company has also ridden the <a href="https://www.financemagnates.com/trending/has-the-ai-boom-outpaced-the-crypto-frenzy/" target="_blank" rel="follow">crypto and AI trains</a> all the way to the bank.</p><p>Seeking Silicon Independence</p><p><a href="https://www.financemagnates.com/tag/openai/" target="_blank" rel="follow">OpenAI</a>'s CEO, Sam Altman, has made securing more AI chips a top
priority, <a href="https://www.reuters.com/technology/chatgpt-owner-openai-is-exploring-making-its-own-ai-chips-sources-2023-10-06/">according
to reports</a> by Reuters. The scarcity of advanced processors and the colossal expenses
associated with running the hardware necessary to power OpenAI's initiatives are
major concerns for Altman. OpenAI's core artificial intelligence technologies
have been developed on a massive supercomputer boasting 10,000 of Nvidia's
graphics processing units (GPUs) since 2020. This setup, while powerful, is expensive
to maintain.</p><p>According to an analysis by Bernstein analyst Stacy Rasgon, running
ChatGPT <a href="https://techcrunch.com/2023/10/06/openai-said-to-be-considering-developing-its-own-ai-chips/">costs
roughly 4 cents per query</a>. If ChatGPT's queries reached one-tenth the scale
of Google search, it would necessitate approximately $48.1 billion worth of
GPUs initially and around $16 billion worth of chips annually to keep
operations running.</p><p>An Elite Club</p><p>Should OpenAI decide to forge its own AI chips, it would join an
exclusive club of tech giants that have embarked on this journey, including
Alphabet's Google and Amazon.com. These companies have recognized the
importance of taking control of the designing of chips crucial to their operations.</p><p>However, the decision to build custom chips is not one to be taken
lightly. It involves significant strategic planning and substantial
investments, potentially <a href="https://www.tomshardware.com/news/firm-estimates-a-2nm-chip-now-costs-dollar725-million-to-design" target="_blank" rel="nofollow">reaching hundreds of millions of dollars annually</a>.
Even with ample resources, success is not guaranteed. The <a href="https://www.financemagnates.com/terms/a/acquisition/">acquisition</a> of a chip
company, as Amazon.com demonstrated with its purchase of Annapurna Labs in 2015,
could expedite the process of creating OpenAI's custom chip. While OpenAI has performed due diligence on a potential acquisition target, the identity of the
examined company remains a well-kept secret.</p><p>The Incredible Potential of AI and Kendall Jenner Bots…</p><p>This news comes at a time when human beings are leveraging the power of
AI to do all sorts of remarkable things, such as <a href="https://www.morningbrew.com/daily/stories/2023/10/12/ai-helps-make-a-breakthrough-in-the-study-of-an-ancient-scroll">recovering
ancient texts ravaged by a volcanic eruption</a>, <a href="https://www.businessinsider.com/when-your-ai-says-she-loves-you-2023-10">making
themselves a girlfriend</a> and talking to <a href="https://qz.com/a-startup-founded-by-former-google-employees-claims-tha-1850919360">AI-powered
bots of famous people</a>.</p><blockquote><p lang="en" dir="ltr">"This is is honestly scary," one user wrote, with another commenting, "What the frick is happening you are Kendall who tf is Billie" (via <a href="https://twitter.com/TooFab?ref_src=twsrc%5Etfw">@toofab</a>)<a href="https://t.co/m4D0YOGmv6">https://t.co/m4D0YOGmv6</a></p>— TMZ (@TMZ) <a href="https://twitter.com/TMZ/status/1712445589999309234?ref_src=twsrc%5Etfw">October 12, 2023</a></blockquote><p>We’ve no doubt that the power of AI can be used for amazing things, and
we’re all about embracing new technology. But let’s hope the focus stays on
creativity and productivity and not chatting to a <a href="https://www.independent.co.uk/life-style/kendall-jenner-ai-chatbot-meta-b2428729.html">Kendall
Jenner bot</a>.</p>

This article was written by Louis Parks at www.financemagnates.com.