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Insider
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22
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OpenAI is taking a page out of Big Tech's playbook by reportedly building its own chips
- OpenAI is said to be teaming up with Broadcom and TSMC to create custom AI chips.
- The move would place OpenAI alongside tech giants like Meta, Amazon, and Google who design and build their own chips.
- OpenAI would gain greater control over its supply chain and benefit from the opportunity to create chips more suited to its needs.
- By designing chips specifically for its models, the chips should offer more speed and greater energy efficiency.
- However, although OpenAI has secured manufacturing capacity with TSMC, it has put plans to build its own network of chip factories on hold for now.
- Custom chip design is typically an exclusive option for the biggest tech companies due to high upfront costs.
- In designing its own chips, OpenAI will have access to benefits such as diversification of suppliers and lower costs.
- OpenAI's move would reduce its dependency on market leader Nvidia for AI chips, and incorporate AMD into its supply mix.
- OpenAI's CEO, Sam Altman, has been outspoken about the need to increase chip supply.
- The company has deep pockets for the investment, raising $6.6bn from investors in early October 2021.
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