Nvidia’s chips have been in high demand in Silicon Valley this year, primarily due to the boom in artificial intelligence. According to Sam Altman, the chip shortage could ease as soon as next year.
Altman, the CEO of OpenAI, told the Financial Times that he expects the chip shortage to diminish as new companies enter the market with competing products to Nvidia’s popular $40,000 H100 processors. This shortage has affected businesses such as OpenAI that have been reliant on Nvidia’s cutting-edge processors, known as GPUs, to power AI applications like ChatGPT.
However, OpenAI has received support in securing these expensive GPUs through the financial backing of Microsoft, which made a multibillion-dollar investment in the company earlier this year. In contrast, Nvidia has seen remarkable success in selling processors to AI companies, driving the company’s market value to over $1 trillion.
Nvidia has set a production target of 500,000 GPUs in 2023 but aims to triple production to at least 1.5 million units in 2024. Altman remarked that a number of major companies, including Google and Microsoft, are looking to compete with Nvidia in the AI chip market. However, CEO Jensen Huang remains cautious about the company’s future, suggesting that no company can be assured of survival.
OpenAI has not yet responded to Insider’s request for comment on the matter.