OpenAI wanting to vertically merge to make their own AI chips may seem harmless enough (it's a good business move, we can cut expenses)! But we can't forget that Sam Altman just a few months ago told Congress he supports making an organization that companies need permission from to being creating/utilizing advanced AI systems. And he's such a kind man he's willing to lead that organization himself.
Obviously someone integrating the chips to train AI, and having the ability to approve/deny his own competition is a huge red flag.
NVidia has a near monopoly on the AI hardware market right now, so some vertical integration of alternative AI hardware doesn't seem nearly as big if a deal if it is needed to fight that current monopoly.
Let's instead go back to when we actually enforced the anti-trust laws that we have. That was nice.
Ideally what we would see is OpenAI investing in a new but independently operated chip manufacturer that makes chips to their standards. Though is it also possible that a chip of such standard would be so specialized that it wouldn't be usable by others? I'm not a hardware person, so that's a genuine question.
That's competition. Apple Silicon completes with Intel at an ecosystem level.
Because anything to do with hardware, particularly anything with silicon, has immense startup costs.
As of today, I say if they go into consumer market they will fail.
If they go into specialised server chips, then they would have a chance, with some sort of accelerator over some arm-based chip - similar to what Nvidia is doing with Grace. Still big money to be spent on supporting the existing ecosystem on their hardware.