OpenAI, the company behind ChatGPT, is in early discussions with semiconductor designers, including Broadcom, to develop a new AI chip. This move is part of a broader strategy to expand its computing capacity and reduce its reliance on Nvidia's GPUs. CEO Sam Altman is spearheading this initiative, with ambitious plans to raise up to $7 trillion for a large-scale chip-making project.

The company aims to produce its own AI chips to address the shortage of expensive GPUs essential for developing AI models like ChatGPT, GPT-4, and DALL-E3. According to The Information, OpenAI has been hiring former Google employees who worked on the tech giant's tensor processing unit.

This effort is part of Altman's larger plan to secure the necessary components and infrastructure for running more powerful AI models. "The limiting factor of AI is capacity: chip capacity, energy capacity, compute capacity. OpenAI is not just going to sit back and let others build that when they are on the front line," a source familiar with OpenAI's plans told the Financial Times.

Altman's vision extends beyond chip development. The Wall Street Journal reported that he aims to raise between $5 trillion and $7 trillion to boost global chip-building capacity, surpassing the current size of the global chip market and the combined market capitalizations of Apple and Microsoft.

Altman has been engaging with various stakeholders, including chipmakers, partners like Microsoft, government bodies, and financial backers. He has met with high-profile figures such as UAE's top security official Sheikh Tahnoun bin Zayed al Nahyan and US Commerce Secretary Gina Raimondo to discuss the project.

OpenAI's plans align with recent trends in the tech industry. The scarcity of Nvidia's $40,000 H100 chips, the most powerful AI chips available, has prompted companies like Microsoft, Google, and Meta to develop their own in-house solutions. Additionally, the US government has announced a $5 billion investment to encourage major chipmakers to invest in the US, aiding companies in their in-house chip development efforts.

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