This necessity arises because there is a need for more graphic processing units, which are necessary to develop well-known models like ChatGPT, GPT-4, and DALL-E3.
OpenAI is currently in discussions with Broadcom. Broadcom is a company that designs, develops, and produces software products. The collaboration with the AI chip Makers will make OpenAI more self-sufficient. They won’t have to rely on Nvidia.
Broadcom is currently dominating the AI chip industry, being one of the most valuable AI chip makers and one of Nvidia competitors. Other Nvidia competitors like Microsoft Corporation and Apple Inc. are at the top, but the company is rising again. Broadcom's rise is mainly due to the use of products like the AI accelerator, the AI chip, and other products powered by artificial intelligence.
Broadcom specializes in creating custom AI chips for specific work purposes. This is beneficial for OpenAI and will improve it.
The development of a custom AI chip and the initiative comes from OpenAI CEO Sam Altman. This plan is much more complex and aims to increase the company's AI development power.
Rumors say that Sam Altman is hiring former Google employees to help with this process. Those former Google employees were involved in developing Google’s AI accelerator. Broadcom worked with Google to develop the Tensor Processing Units, demonstrating their expertise in creating custom AI chips.
This rumor is neither confirmed nor denied, but sources declared, “OpenAI is having ongoing conversations with industry and government stakeholders about increasing access to the infrastructure needed to ensure AI’s benefits are widely accessible.”.
Altman’s plan is not new; the first report about the development of the custom AI chip dates back to September 2023. In January of this year, the CEO of OpenAI held fundraising meetings with SoftBank Group and G42. Altman’s raising goal seemed too ambitious to achieve. He wanted to raise $7 billion to create the AI chip, but that did not happen.
With an AI chip market share of 70% to 95%, tech companies usually rely on Nvidia. OpenAI tries to cut the process short. OpenAI is in discussion with Nvidia competitors about creating a new AI chip. Even tho the companies specialize in different aspects of chip making, both companies are AI chip makers.
The collaboration with AI chip makers – Broadcom seems to be a practical choice. This allows OpenAI to reach its goals of working with Nvidia competitors and maybe develop more AI products like an AI accelerator.
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