OpenAI is considering acquisition while attempting to create its own AI chips

One of the principal forces behind this choice is OpenAI CEO Sam Altman, who has made the company’s acquisition of more AI chips a top goal.

According to a Friday media report, OpenAI, the firm behind the artificial intelligence chatbot ChatGPT, wants to create its own AI chips and has even thought about acquiring another business to do it.

According to sources cited by Reuters, OpenAI has been debating several approaches to address the scarcity of costly AI processors it depends on, but no decision has been taken.

These choices include creating its own AI processor, working more closely with other chip manufacturers, such as Nvidia, and expanding its supply base beyond Nvidia.

One of the principal forces behind this choice is OpenAI CEO Sam Altman, who has made the company’s acquisition of more AI chips a top goal.

According to the source, he has expressed reservations about the costly prices and limited availability of the hardware needed to power OpenAI’s software.

Thousands of Nvidia GPUs are used in a Microsoft-built supercomputer that OpenAI has been using to enhance its generative AI capabilities.

The expense of maintaining ChatGPT is too costly for the business. Each inquiry costs around 4 US cents, per study by Bernstein analyst Stacy Rasgon. In order for ChatGPT to continue operating, it would initially need around $48.1 billion in GPUs and roughly $16 billion in processors if ChatGPT queries increased to one-tenth the magnitude of Google searches.

OpenAI is apparently selling its current shares to raise money at a valuation of $80-$90 billion. The Wall Street Journal reports that the ChatGPT developer is “talking to investors about a share sale” that would “roughly triple its level earlier this year” and value the company between $80 billion and $90 billion.

OpenAI completed a $300 million share offering in April at a $29 billion valuation.

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