Why everyone from OpenAI to SpaceX is building their own chips (and turning up the heat on Nvidia)

Companies like OpenAI, Google, Apple, and SpaceX are developing their own custom chips to reduce dependence on a single supplier, specifically Nvidia, which has long dominated the AI chip market. OpenAI's custom inference chip, Jalapeño, built in partnership with Broadcom, is the latest example of this trend. By building their own chips, these companies aim to mitigate single-supplier risk and potentially gain a competitive edge. This shift could ultimately challenge Nvidia's market dominance and increase competition in the AI chip industry.

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