OpenAI, the company behind ChatGPT and the GPT-4 large language model, is reportedly exploring the possibility of creating custom silicon to power its next-generation AI models. According to Reuters, Insider sources have even alluded to the firm evaluating potential acquisitions of chip design firms. While a final decision is yet to be cemented, conversations from as early as last year highlighted OpenAI's struggle with the growing scarcity and escalating costs of AI chips, with NVIDIA being its primary supplier. The CEO of OpenAI, Sam Altman, has been rather vocal about the shortage of GPUs, a sector predominantly monopolized by NVIDIA, which holds control over an astounding 80% of the global market for AI-optimized chips.

Back in 2020, OpenAI banked on a colossal supercomputer crafted by Microsoft, a significant investor in OpenAI, which harnesses the power of 10,000 NVIDIA GPUs. This setup is instrumental in driving the operations of ChatGPT, which, as per Bernstein's analyst Stacy Rasgon, comes with its own hefty price tag. Each interaction with ChatGPT is estimated to cost around 4 cents. Drawing a comparative scale with Google search, if ChatGPT queries ever burgeoned to a mere tenth of Google's search volume, the initial GPU investment would skyrocket to an overwhelming $48.1 billion, with a recurring annual expenditure of approximately $16 billion for sustained operations. For an invitation to comment, OpenAI declined to provide any statements. The potential entry into the world of custom silicon signals a strategic move towards greater self-reliance and cost optimization so further development of AI can be sustained.