"This decision is an odd one, since Nvidia is widely regarded as the provider of the industry's most advanced chips. It is hard to figure out where OpenAI would get other chips. Perhaps AMD, though it is well behind Nvidia in the opinion of most experts. Amazon recently released its own AI chip called Trainium3. Google has a product called Ironwood TPU."
"The emerging conflict between Nvidia and OpenAI may be related to Nvidia's reluctance to participate in an OpenAI investment round of $100 billion. Nvidia CEO Jensen Huang said he never had a firm agreement to be involved. It would appear that this represents an erosion of Nvidia's belief in OpenAI's future at a higher valuation. Chaos on AI Mountain The tension among the large AI companies is increasing as they jockey for position."
OpenAI has grown unsatisfied with some of Nvidia's latest AI chips and has pursued alternative hardware since last year, creating strain between the companies. Potential alternatives include AMD, Amazon's Trainium3, Google's Ironwood TPU, Microsoft's announced chip, and Groq, which Nvidia acquired but can still sell products under the purchase terms. Nvidia appears reluctant to join a planned $100 billion OpenAI investment round; CEO Jensen Huang said he never had a firm agreement to participate, suggesting reduced confidence in a higher valuation. The broader AI sector is intensifying competition and cross-investment among major and smaller players.
Read at 24/7 Wall St.
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