OpenAI gears up to combat AI chip shortages by exploring in-house production OpenAI gears up to combat AI chip shortages by exploring in-house production
OpenAI ChatGPT relies heavily on AI chips for their operations.
1 min read
Updated: Oct. 6, 2023 at 2:01 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
OpenAI, the company behind ChatGPT, is exploring the possibility of producing its artificial intelligence (AI) chips to address the persistent shortage it has been grappling with, Reuters reported on Oct. 6.
OpenAI has reportedly conducted comprehensive market assessments, including possibly acquiring an undisclosed chip manufacturer. However, this plan is still in the process of being finalized, with internal discussions ongoing.
Last year, OpenAI CEO Sam Altman highlighted the importance of acquiring more chips for its operations as the shortages impeded the company’s short-term objectives.
A now-deleted blog post from Raza Habib, the CEO of AI firm Humanloop, said:
“A common theme that came up throughout the discussion was that currently OpenAI is extremely GPU-limited and this is delaying a lot of their short-term plans. The biggest customer complaint was about the reliability and speed of the API. Sam acknowledged their concern and explained that most of the issue was a result of GPU shortages.
AI chips have become a hot commodity since ChatGPT launched to much acclaim. These chips are designed to make building AI systems faster and cheaper. However, with the proliferation of several AI startups, it has become much more difficult for OpenAI to acquire these chips for its chatbot.
Due to this, OpenAI began considering solutions to combat the scarcity issues it faces. Some solutions the company is reportedly considering include the development of proprietary chips, strengthening its partnerships with Nvidia, which dominates more than 70% of the market, and exploring alternative chip suppliers.
Meanwhile, if OpenAI were to begin manufacturing its chip, it would join a small band of tech firms, like Google and Amazon, that produce their chip themselves.
OpenAI has yet to respond to CryptoSlate’s request for comment as of press time.
Mentioned in this article
Posted In: AI
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Editor Editor 
Liam 'Akiba' Wright
Also known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
In this article
OpenAI
OpenAI is an AI research and deployment company committed to ensuring that general-purpose artificial intelligence helps all of humanity.
Nvidia
Nvidia Corporation is a multinational technology company based in Santa Clara, California, that was founded in Delaware.
Microsoft
Microsoft is an American multinational technology company that develops, licenses, and sells computer software, consumer electronics, and personal computers.
Amazon
Amazon.com, Inc., commonly known as Amazon, stands as an American multinational technology company renowned for its diverse portfolio encompassing e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence.
Sam Altman is the CEO of OpenAI, an AI research and deployment company since 2019.
