OpenAI is moving to reduce its dependence on Nvidia by partnering with Broadcom to create custom AI chips, with production expected to start next year. This collaboration, valued at approximately $10 billion, aims to enable OpenAI to internally train and deploy models like ChatGPT without relying heavily on Nvidia’s established chip supply. Nvidia, recognized for its dominant position in AI processing, continues to meet high demand from major companies such as Amazon, Google, and Microsoft. While OpenAI explores in-house chip development, it isn’t alone; tech giants like Google and Amazon are also venturing into custom chip production. Despite these shifts, Nvidia remains a strong player, reporting a 56% increase in sales recently. Additionally, easing trade tensions may allow Nvidia to expand its market reach internationally. This strategic move highlights the increasing trend among tech companies to develop proprietary solutions to enhance efficiency and reduce dependency on established suppliers.
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