The “brutal crunch” caused by a shortage of high-priced chips necessary for powering tools like ChatGPT is expected to ease next year, according to OpenAI’s CEO, Sam Altman.

Companies like OpenAI, leading the generative AI surge this year, rely on Nvidia’s GPUs for the computational power needed for the efficient operation of apps like ChatGPT. OpenAI has been able to secure these pricey GPUs, thanks to financial backing from Microsoft (NASDAQ:MSFT).

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Nvidia has been very successful in selling these processors and it now boasts a market capitalization surpassing $1 trillion. The company has set a production target of 500,000 GPUs in 2023, aiming to triple its output to at least 1.5 million units in 2024.

Altman’s optimism is evident as he says, “The magic of capitalism is doing its thing,” adding that many companies, including giants like Google, Microsoft, and chip specialist AMD, aim to compete with Nvidia.

Despite Nvidia’s significant role in this year’s AI boom, CEO Jensen Huang remains cautious, stating, “There are no companies that are assured survival.”

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