Reports are circulating that Sam Altman and his team at OpenAI may be looking to manufacture AI chips in-house…
The company has supposedly gone as far as evaluating potential acquisition targets!
If the reports are accurate, then this tells us two very important things:
1.) Open AI is serious about building their own chips
2.) The chip shortage must be very bad indeed
Keep in mind that this is not the first company that’s looking at in-house chip manufacturing…
Amazon has confirmed that they are already developing custom AI-capable AWS chips in an unmarked facility in Austin.
A recent report stated that Google is looking to drop Broadcom in favor of manufacturing its own chips.
Finally, we had rumors circulating that Microsoft is also looking to develop its own AI chips. While the company’s chief technology officer didn’t confirm this when questioned, he didn’t deny it either!
All of this leads us to an interesting question…
Could this AI chip shortage actually be detrimental to Nvidia in the long run?
After all, these chips are the reason why the company has run up so much in the first place…
While it could have some negative impact on sales down the road, I think the timeline and scale of this impact are being overblown by the bears.
Manufacturing of this complexity will be difficult to scale to the level that “a Microsoft” would need…
It’s likely that these companies will build very specialized chips in-house but still have most of the infrastructure run on 3rd party chips such as the H100.
Only time will tell though…
That’s all for now!
Until Next Time,
-Damian