The partnership between Samsung Electronics and OpenAI seemed promising after chairman Jay Y. Lee’s meeting with CEO Sam Altman in South Korea to foster collaboration. Despite this, OpenAI is reportedly leaning towards TSMC, Samsung’s main competitor, for the production of its custom AI chips.
OpenAI’s Decision to Potentially Use TSMC for 3nm AI Chips
There was speculation that Samsung Foundry, Samsung’s chip manufacturing division, would be chosen to fabricate OpenAI’s in-house AI chips. However, a report from Reuters indicates that OpenAI is nearing the final design stages of these chips.
The motivation behind this move is reportedly to reduce OpenAI’s reliance on Nvidia, currently a leading AI chip provider, and to potentially lower operational expenses.
While no official announcement has been made by the ChatGPT developer, there is anticipation that chip designs may be sent to TSMC in the coming months, targeting mass production using TSMC’s 3nm process node possibly by 2026.
Samsung Foundry’s reputation in the chipmaking industry has faced challenges in recent years. Issues with overheating and high power consumption in chips manufactured for clients like Nvidia, Qualcomm, and Samsung’s Exynos division have led to some clients switching to TSMC.
Despite Samsung Foundry’s introduction of newer 3nm and 4nm process nodes, adoption by major clients has been limited, primarily used by Samsung for its Exynos chips. Now, OpenAI appears to be following suit by potentially choosing TSMC, despite its connections with Samsung.
Potential Continued Collaboration: HBM Chips from Samsung
Despite potentially choosing TSMC for chip fabrication, OpenAI might still source high-bandwidth memory (HBM) chips from Samsung for its AI processors. Companies like Amazon, Google, Meta, and Microsoft are developing their AI chips to lessen dependence on Nvidia. The investment required for a custom chip like this can reach $500 million or more, prompting Sam Altman to seek funding globally for OpenAI’s ventures.
Samsung has also expressed interest in investing in OpenAI’s Stargate Project to reinforce its position in the AI market. The company is already integrating OpenAI’s algorithms into its high-end TVs to enhance AI-driven features.
While the future is uncertain, OpenAI’s potential shift to TSMC for chip manufacturing underscores the competitive landscape and the focus on performance and efficiency in the AI chip industry. This decision does not rule out the possibility of continued collaboration between OpenAI and Samsung in other areas, such as memory solutions.