OpenAI Considers Producing AI Chips In-House Amid Global Shortage

Exploring Acquisition Opportunities

OpenAI, the company behind the popular artificial intelligence chatbot ChatGPT, is reportedly looking into the possibility of manufacturing its own processing chips. This comes in response to the global shortage of these expensive and hard-to-produce hardware components. According to a recent Reuters report, OpenAI has even evaluated an unnamed company as a potential acquisition target to support its AI chip-making ambitions. However, the company has not yet made a final decision on whether to proceed.

Addressing the Chip Shortage

In addition to considering in-house chip production, OpenAI is exploring other options to address the current chip shortage. These options include strengthening its relationship with its primary chip supplier, NVIDIA, and diversifying its chip suppliers beyond its current providers. The company wants to overcome the shortage that has been causing delays in its progress.

Joining Tech Industry Giants

If OpenAI does go ahead with its plan to manufacture its own chips, it will join the ranks of tech industry giants such as Google and Amazon who have already moved chip production in-house. The demand for specialized AI chips has soared since the public launch of ChatGPT in November last year. This surge in demand has also led to a significant increase in NVIDIA's share price as companies rush to acquire the costly computing hardware necessary for AI applications.

OpenAI has not yet responded to requests for comment.