Delhi Delhi. OpenAI is working with Broadcom and TSMC to create its first in-house chip designed to support its artificial intelligence systems, while also pairing AMD chips with Nvidia chips to meet its growing infrastructure demands. Has been, sources told Reuters. OpenAI, the fast-growing company behind ChatGPT, has examined several options to diversify chip supply and reduce costs. OpenAI considered building everything in-house and raising capital for an expensive plan to build a network of factories known as “foundries” for chip manufacturing.
The company has abandoned ambitious foundry plans for now due to the cost and time required to build the network, and instead plans to focus on in-house chip design efforts, according to the sources, who declined to be named. requested because he was not authorized to discuss private matters. The company's strategy, detailed here for the first time, highlights how the Silicon Valley startup is leveraging industry partnerships and a mix of internal and external approaches to secure chip supplies and keep up with larger rival Amazon. , like Meta, Google and Microsoft to manage costs. As one of the largest buyers of chips, OpenAI's decision to source from a diverse range of chip makers when developing its customized chips could have implications across the broader tech sector.
Broadcom shares surged after the report, rising more than 4.5% in Tuesday trading. AMD shares also extended their gains from the morning session, ending the day up 3.7%. OpenAI, AMD and TSMC declined to comment. Broadcom did not immediately respond to a request for comment.
OpenAI, which helped commercialize generative AI that produces human-like responses to questions, relies on ample computing power to train and run its systems. As one of the largest buyers of Nvidia's graphics processing units (GPUs), OpenAI uses AI chips to train models, where the AI learns from data and makes predictions, based on new information. Uses AI to make predictions or decisions. Reuters previously reported on OpenAI's chip design efforts. The Information reported on negotiations with Broadcom and others.
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