Nvidia has emerged as the biggest winner in the recent AI boom, becoming the third most valuable company globally, surpassing Alphabet and Amazon. For a brief period in June, Nvidia even claimed the top spot, outshining Microsoft and Apple.
Seeking Alternatives
Despite Nvidia’s dominance, many tech giants are looking for alternatives to reduce dependency. Microsoft and OpenAI, for instance, are reportedly planning a data center project that could feature an AMD-powered AI supercomputer, codenamed “Stargate.”
OpenAI has also been in talks with several chip designers, including Broadcom, about developing a new AI chip to challenge Nvidia’s supremacy.
Broadcom’s Position and Potential
Broadcom is a prominent player in the semiconductor industry, designing and supplying a wide range of products used in data center networking, home connectivity, broadband access, telecommunications equipment, smartphones, and base stations. Currently, Broadcom is the 13th most valuable company worldwide, ranking higher than well-known tech giants like Samsung, AMD, Intel, Arm, IBM, and Qualcomm.
OpenAI’s Ambitions
While it’s unclear if OpenAI’s discussions with Broadcom and other companies are directly related to the “Stargate” project, the effort to develop a new AI chip is evident. The Information suggests that despite these efforts, any new chip developed is unlikely to rival Nvidia’s offerings in the near future due to Nvidia’s extensive research, development, and financial investment.
To bolster its hardware ambitions, OpenAI has reportedly hired former Google employees with experience in developing Tensor processors, indicating the seriousness of its intent to create proprietary AI hardware.
