The company recently inked a deal to make the chips.
Key takeaways
- OpenAI looks to move away from dependence on Nvidia’s hardware dominance and build its own AI hardware.
- Nvidia adapts to market changes by releasing an AI chatbot, demonstrating flexibility in response to competition.
- Competition in the AI hardware market intensifies as companies look to develop pre-defined solutions challenging Nvidia’s dominance.
Right now, Nvidia is the king of AI hardware. Many of the big movers in the artificial intelligence industry rely on Nvidia’s hardware to function, but they’re also keen to build custom solutions so they don’t have to rely on another company’s hardware. Such is the case with OpenAI, which has negotiated to build its own AI hardware.
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OpenAI moves into the realm of hardware.
As reported. Tom’s Hardware, OpenAI is currently in discussions about creating its own brand of AI processors. These will likely be neutral processing units (NPUs), which are processors dedicated to AI-related tasks and are found in AI PCs. Just as a GPU frees the processor from handling graphic rendering tasks, an NPU is specifically designed to handle AI processes.
If the project takes off, OpenAI will likely begin phasing out Nvidia’s hardware and replacing the chips with its own. Once complete, it could begin selling or leasing the hardware to companies interested in providing AI services to the public. And while we may not see OpenAI-branded hardware in consumer stores, it’s not an impossible feat.
Nvidia’s tricks to avoid becoming redundant
Nvidia struck gold with the AI rush and became the third most valuable company in the US, beating Amazon and Alphabet (owner of Google) and losing only to Microsoft and Apple. This is due to its dominant position in the AI realm. If a company wanted to get into AI, it bought Nvidia hardware. Even OpenAI and Microsoft’s AI ventures were built on the back of Nvidia’s hardware.
While companies now want to avoid relying on Nvidia hardware and build their own solutions, it’s not all curtains for the graphics giant. The company recently responded to this change by releasing its own AI chatbot called Chat With RTX, which used the GPUs in existing systems to provide responses. No internet required. Thus, while Nvidia may eventually lose its firm grip on the AI hardware market, it is not out of the running.