ChatGPT creator could make its own chips

ChatGPT might be powered by OpenAI’s own processors in the future, with the company considering manufacturing artificial intelligence (AI) chips, Reuters reports.

Citing sources familiar with the company’s plans, the report stated that the company has gone so far as to evaluate a possible acquisition target.

Sam Altman, CEO of OpenAI, has previously complained of GPU shortages being to blame for concerns over the ChatGPT API’s speed and reliability.

In addition to confronting the GPU shortage, OpenAI producing its own chips could help make the platform’s running costs more manageable.

Analysis from Bernstein Research revealed that each ChatGPT query costs OpenAI approximately four US cents, and with millions of queries a day, the costs stack up rapidly.

While the company reached 100 million monthly users in its first two months, ChatGPT lost some of its user base for the first time in July 2023.

According to Bernstein Research’s analysis, if ChatGPT queries reach a tenth of the queries Google gets, it would initially need $48.1 billion (R929 billion) worth of GPUs and spend $16 billion (R309 billion) a year on chips in the future.

Currently, Nvidia dominates the market for chips made for AI applications, and as a result, some other companies have chosen to start making their own.

For example, Microsoft has been working on making an AI chip of its own since 2019, according to The Information.

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ChatGPT creator could make its own chips