Key Takeaways
- OpenAI considers making its own AI hardware, shifting away from reliance on Nvidia’s hardware dominance.
- Nvidia adapts to market changes by releasing a AI chatbot, demonstrating flexibility in response to competition.
- Competition in AI hardware market intensifies as companies seek to create bespoke solutions, challenging Nvidia’s dominance.
Right now, Nvidia is the king of AI hardware. A lot of the big movers in the artificial intelligence industry rely on Nvidia’s hardware to get the job done, but they’re also keen to make their own bespoke solution so they don’t need to rely on another company’s hardware. Such is the case with OpenAI, who have entered talks to have their own AI hardware made.
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OpenAI moves into the hardware sphere
As reported by Tom’s Hardware, OpenAI is in talks right now about getting its own brand of AI processors made. These will likely be Neutral Processing Units (NPUs), which are dedicated processors reserved for AI-related tasks and found in AI PCs. Much like how a GPU frees up the processor from having to handle graphic rendering tasks, an NPU is specifically designed to handle AI processes.
If this plan kicks off, OpenAI will likely begin removing Nvidia’s hardware and replacing the chips with its own. Once done, it may begin selling or renting hardware to companies interested in providing AI services to the public. And while we may not see OpenAI-branded hardware in consumer shops, it’s not an impossible feat.
Nvidia maneuvers 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 (Google’s owner) and losing only to Microsoft and Apple. This is due to its dominant position in the AI sphere; 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 depending on Nvidia hardware and make their own solutions, it’s not curtains for the graphics giant. The company recently responded to this shift by releasing its own AI chatbot called Chat With RTX, which used the GPUs in existing systems to provide the answers; no internet required. As such, while Nvidia may eventually lose its tight grip on the AI hardware market, it’s not out of the race.