Microsoft, OpenAI’s Principal Supporter, Is Building And Testing A Special AI Chip
Microsoft, one of OpenAI’s biggest investors, has built a gigantic supercomputer using 10,000 Nvidia GPUs to build its generative artificial intelligence capabilities from 2020. Microsoft, OpenAI’s principal supporter, is building and testing a special AI chip, according to The Information. Plans may indicate increasing distance between the companies.
Specialized AI chips have been more popular since ChatGPT launched last year. The latest generative AI technology requires AI accelerator chips to learn and run. One of the few chipmakers that make effective AI chips, Nvidia leads the industry.
Running ChatGPT costs the company a lot. ChatGPT would need $48.1 billion in GPUs and $16 billion in processors a year to operate at a tenth of Google’s search volume.
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OpenAI Is Considering Creating Its Own AI Chips
According to sources, ChatGPT’s parent firm, OpenAI, is considering creating its own AI chips and investigating a potential acquisition target. According to Reuters, internal conversations indicate the corporation has not decided to proceed.
According to sources, OpenAI has discussed ways to address its scarcity of pricey AI chips since last year. Options for AI chip development include constructing its own, collaborating with other chipmakers like Nvidia, and expanding its supplier base outside Nvidia.
CEO Sam Altman prioritizes buying more AI processors. He has voiced concerns about the shortage of graphics processing units, a market controlled by Nvidia, which holds over 80% of the global market for AI chips. Altman cites a shortage of powerful processors that power OpenAI’s software and the “eye-watering” expenses of running its hardware to support its initiatives and goods as reasons to get more chips.
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Big IT Firms Have Built Their Own Processors With Limited Success
It is unclear if OpenAI will design a proprietary chip. Industry veterans say it would be a big strategic undertaking and a huge investment that may cost hundreds of millions of dollars a year. Investing resources would not guarantee success for OpenAI. A chip firm acquisition could speed up OpenAI’s chip development, as it did for Amazon.com and Annapurna Labs in 2015.
One source said OpenAI examined due diligence on a prospective purchase candidate. If OpenAI pursues a proprietary chip, including an acquisition, it may take years, leaving it reliant on commercial sources like Nvidia and AMD.O.
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Big IT corporations have built their own processors for years with limited success. Meta decided to scrap some of its AI chips due to concerns with its bespoke chip effort, as reported by Reuters. The Facebook owner is developing a new processor for all AI tasks.
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