OpenAI Explores Making Own AI Chips to Cut Costs and Reliance on Nvidia

OpenAI, creator of ChatGPT, is exploring making its own AI chips to address chip shortage and high computing costs.

OpenAI has gone as far as evaluating a potential chip company acquisition target.

Making its own chips would allow OpenAI to reduce reliance on Nvidia, which dominates the AI chip market.

Developing custom chips could take years and require significant investment, so OpenAI may stick with commercial providers for now.

OpenAI's backer Microsoft is also developing a custom AI chip that OpenAI is testing, signalling potential further separation.