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OpenAI wants to develop its own AI processors to combat GPU shortage

OpenAI wants to develop its own AI processors to combat GPU shortage

OpenAI wants to develop its own AI processors to solve the shortage of specialized processors, especially GPUs. To this end, the generative AI specialist is even looking at the possibility of acquiring a chip manufacturer to speed up the development process.

The recent strong growth of AI solutions and applications is causing a global shortage of specialized processors, especially GPUs. It’s got to the point where it’s inhibiting companies like OpenAI from further developing their (generative) AI models. The AI giant has now developed most of its AI models on a Microsoft-built supercomputer running on 10,000 Nvidia GPUs.

CEO Sam Altman of OpenAI has long complained about the lack of GPUs, a market segment dominated by Nvidia, and is therefore internally scrambling to find alternatives. In addition, the generative AI specialist faces high costs to keep its processor park running.

Three scenarios

According to Reuters sources, three scenarios are now being developed within OpenAI. These should ensure that the company has enough AI processors to scale up operations in the near future.

One notable scenario is that OpenAI will manufacture the necessary processors itself. This would be a remarkable move and would mirror the behaviour of other tech giants that have developed and manufactured their own processors. Examples include Google, as well as AWS and Apple.

According to Reuters, developing processors in-house is something that is going to take a lot of time for OpenAI. Either way, this will require a huge strategic investment. In addition, the chances of success are not very high.

An acquisition of an existing chip manufacturer is then the obvious choice to speed up both development work and production. In fact, according to sources, OpenAI has already conducted due diligence on a potential acquisition candidate. It’s not known which company is involved.

Other alternatives

Other alternatives include working more closely with Nvidia or spreading the procurement of GPUs across multiple vendors. According to The Information, Microsoft, a partner of the AI developer, is also said to be developing its own AI processors. These could then be used by OpenAI as well.

Also read: ‘OpenAI wants company value of 85 billion euros’