OpenAI has made a significant move by securing production capacity for TSMC’s upcoming Angstrom-level A16 chips, according to a report from the Economic Daily News. This will enable OpenAI to align with the current advancements in semiconductor technology for AI hardware.
The A16 process, which is expected to start mass production in 2026, will have significantly higher transistor density and performance than the current chips. Through booking capacity on these next-gen chips, OpenAI shows that it is investing heavily in its AI development. This puts OpenAI on the same list of the initial customers of TSMC’s A16 chips as Apple.
OpenAI targets video generation improvements with new chips
According to the report, A16 chips could help OpenAI’s Sora model, particularly when it comes to video generation. This emphasis on custom AI chips highlights the company’s Hardware strategy, going beyond software to acquire the right hardware to support OpenAI’s AI models. OpenAI’s decision not to have its own fabrication facilities but to opt for TSMC is indicative of OpenAI’s philosophy of collaborating directly with leading semiconductor companies.
Besides, OpenAI has also partnered with other semiconductor companies, such as Broadcom and Marvell, to create chipsets known as ASICs that are suited for AI-related applications. These ASICs will be built with the use of TSMC’s 3nm process family in 2024 or 2025, followed by the A16 node. Broadcom and Marvell, OpenAI’s partners, will help the company benefit from their experience in chip design and manufacturing.
Apple considers a major investment in OpenAI
In addition, Apple is set to launch its new iPhones on September 9 with the new AI features being incorporated. In June, Apple revealed that OpenAI’s technology would be integrated into its highest-end iPhones and the AI solutions of other businesses.
Additionally, as previously reported by Cryptopolitan, Apple Inc. is said to be in talks with OpenAI to raise a large sum of money and is participating in the funding round. The funding round led by Thrive Capital is looking to raise $1 billion and could put OpenAI’s valuation at $100 billion. This valuation would rank OpenAI as one of the most valuable technology companies in the world.
If Apple decides to invest in OpenAI this could affect its search service agreement with Google. At the moment, Google is paying Apple to remain the default search engine on iOS devices, a contract that started in 2016.
OpenAI has also recently introduced a new AI search feature known as SearchGPT. This prototype is intended to incorporate AI models with web information in order to provide quick and accurate information.
