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OpenAI Looking To Build Its Own AI Chips - And Why It Matters

Jan 20, 2024 - mediapost.com
OpenAI CEO Sam Altman is planning to address the anticipated semiconductor chip shortage by the end of the decade. He aims to raise billions of dollars for a chip venture that will involve setting up a network of chip fabrication facilities, similar to Texas Instruments, to design and manufacture semiconductors for AI and server capacity expansion. Altman has reportedly held discussions with Abu Dhabi-based G42 and SoftBank Group for this project.

The chips produced will be used by advertising and marketing companies working with AI. This plan is more ambitious than outsourcing projects to third-party companies like Amazon, Google, and Microsoft. Meanwhile, Meta Platforms is also investing in AI infrastructure, with CEO Mark Zuckerberg announcing the combination of the company’s two major AI research groups, FAIR and GenAI. By the end of the year, Meta estimates having 600,000 H100 and H100 equivalent amounts of computing power.

Key takeaways:

  • OpenAI CEO Sam Altman is planning to address the anticipated semiconductor chip shortage by setting up a network of chip fabrication facilities, and is seeking to raise billions of dollars for this venture.
  • The chips produced would support artificial intelligence and the expected increase in server capacity, with potential clients including advertising and marketing companies using AI.
  • Altman's strategy of building and maintaining a fabrication facility is more ambitious than outsourcing to a third-party company, a common practice among tech giants like Amazon, Google, and Microsoft.
  • Meta Platforms, formerly Facebook, is also investing heavily in AI infrastructure, with CEO Mark Zuckerberg announcing the combination of the company's two major AI research groups to accelerate work.
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