Sam Altman is determined to safeguard OpenAI from being derailed by a simple microchip shortage. The scarcity of these crucial components, vital for AI advancement, has been a major source of frustration for Altman and numerous tech executives aiming to replicate OpenAI’s achievements.
The introduction of ChatGPT has triggered a surge in demand for GPUs and other high-end chips, outstripping the existing supply capabilities. Altman described the shortage as “brutal” in November, with Microsoft also highlighting it as a potential risk factor for investors.
Presently, these chips are predominantly supplied by a limited number of companies dominating the AI processor market. Nvidia stands out as the key player, driven by the high demand for its H100 GPUs, which can fetch over $40,000 each.
However, Altman is now exploring alternatives beyond this dependency by venturing into chip manufacturing. Reports from Bloomberg indicate that Altman has been actively engaging heavyweight investors to support a new AI chip venture, aiming to enhance the company’s chip procurement autonomy.
Establishing a New Supply Chain
Traditionally, companies like Nvidia focus on chip design, outsourcing the manufacturing to specialized facilities like TSMC and Intel. Nevertheless, several tech firms have started developing their own chips. Microsoft recently unveiled its Azure Maia AI chip tailored for large language model training, while Google introduced a similar chip design last year.
Altman’s vision extends beyond merely emulating Nvidia’s success. While contemplating proprietary designs earlier, Altman’s new strategy, as per Bloomberg, involves not only chip design but also the establishment of a network of fabrication plants for manufacturing. This approach would differentiate OpenAI by achieving vertical integration, granting full control over the chip production process.
Despite the potential benefits, Altman faces significant challenges, including securing substantial funding and expertise for cutting-edge fabrication facilities and overcoming technical hurdles to rival Nvidia’s H100 units.
Adam Niewinski, managing partner at OTB Ventures, views Altman’s chip technology investment as pivotal for AI advancement and a promising financial opportunity amidst the anticipated sector growth.
Current Focus on Stockpiling
While Altman’s ambitious plan may address long-term chip shortages, current efforts by executives like Mark Zuckerberg to secure substantial quantities of Nvidia H100s reflect the immediate scramble for chip procurement. Zuckerberg’s aim to amass around 350,000 H100s by year-end underscores Meta’s commitment to bolstering infrastructure for future AI advancements, emphasizing the necessity of evolving towards full general intelligence to enhance various AI applications.
