Open AI is reportedly looking into making its own AI chips

Reuters reported on Friday that, according to insiders familiar with the matter, Open AI is looking into making its own artificial intelligence chips.

The company is known for its Chat GPT server and the move into chips would mark a major shift in their strategy.

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While the plan is yet to be approved, the need for manufacturing its own AI chips comes as a result of the high price of AI chips that Open AI needs to acquire in order for its servers to function.  The company has gone as far as evaluating the acquisition targets, Reuters reports. 

Open AI declined Reuter’s request for a comment. 

Reuters cited Bernstein analyst Stacy Rasgon’s estimates that OpenAI may need roughly $48.1 billion worth of GPUs initially and about $16 billion worth of chips a year to keep operational.

The next steps that Open AI is likely to take in relation to the AI chips are unclear but the reports could signal a major twist in Generative AI’s evolution.

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