Introduction
Sam Altman, the CEO of OpenAI, has made a prediction that the current shortage of artificial intelligence (AI) chips will ease next year. This shortage has made Nvidia's chips highly sought after in Silicon Valley due to the AI boom. However, Altman believes that the entry of new competitors into the market will alleviate the scarcity of these chips.
Addressing the Chip Shortage
Altman, in an interview with the Financial Times, foresees a resolution to the "brutal crunch" caused by the shortage of expensive chips required to power tools like ChatGPT. He expects that the chip shortage will ease as more companies enter the market with rival offerings to Nvidia's popular $40,000 H100 processors.
Dependency on Nvidia
Companies like OpenAI have heavily relied on Nvidia for state-of-the-art processors, called GPUs, which provide the necessary computing power for efficient functioning of AI applications like ChatGPT. OpenAI has received support from Microsoft, who made a significant investment in the company, to secure the expensive GPUs.
Nvidia's Success
Nvidia's success in selling processors to AI companies has been remarkable, leading to the company achieving a market capitalization of over $1 trillion. To meet the growing demand, Nvidia has set a production target of 500,000 GPUs in 2023 and aims to triple production to at least 1.5 million units in 2024.
Competition in the Market
Altman believes that the competitive nature of capitalism will drive more companies to enter the AI chip market. Tech giants like Google and Microsoft, as well as chip specialist AMD, are looking to challenge Nvidia's dominance in this space.
Nvidia's Cautious Approach
Despite Nvidia's significant role in accelerating the AI boom, CEO Jensen Huang remains cautious. At a recent event, Huang stated, "There are no companies that are assured survival." This highlights the dynamic and unpredictable nature of the industry.
Conclusion
Sam Altman's prediction of an easing chip shortage in the AI industry next year brings hope to companies like OpenAI, which heavily rely on these chips for their cutting-edge AI applications. The entry of new competitors into the market will likely increase the availability of AI chips and drive further innovation in the field.
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By: hchowdhury@insider.com (Hasan Chowdhury)
Title: OpenAI CEO Predicts AI Chip Shortage Will Ease in 2023
Sourced From: www.businessinsider.com/sam-altman-predicts-chip-shortage-nvidia-ease-next-year-2023-11
Published Date: Mon, 13 Nov 2023 12:01:13 +0000
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