Nvidia’s chips have been highly sought after in Silicon Valley this year due to the AI boom. But according to Sam Altman, the shortage could ease as early as next year. In a report by The Financial Times, Altman predicted that the chip shortage would ease as rival companies entered the market with alternatives to Nvidia’s popular $40,000 H100 processors. Businesses like OpenAI that have been at the forefront of the AI boom this year have relied on Nvidia’s GPUs to power apps like ChatGPT. The shortage was also addressed by Altman, who is the CEO of OpenAI, citing the financial backing of Microsoft as a factor that has helped secure expensive GPUs for AI companies. Nvidia’s success in selling processors to AI companies has propelled the company’s market capitalization to over $1 trillion. This has led to the company setting a production target of 500,000 GPUs in 2023, with plans to triple production to at least 1.5 million units in 2024. However, Altman also stated that companies such as Google and Microsoft are looking to compete with Nvidia, including chip specialist AMD. Despite Nvidia’s integral role in this year’s AI boom, CEO Jensen Huang has advised caution, stating that there are no companies assured survival in the market. There was no immediate response from OpenAI to Insider’s request for comment made outside of normal working hours.
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