Microsoft’s plan to fix its chip problem is, partly, to let OpenAI do the heavy lifting

Microsoft is taking a page from OpenAI’s playbook, literally. Bloombergfirst reportedthat the tech giant plans to leverage its partner’s custom chip development to bolster its own struggling semiconductor efforts, a move that looks increasingly pragmatic given Microsoft’s lackluster performance compared to rivals like Google and Amazon.

The arrangement is straightforward: OpenAI is designing AI chips with Broadcom, and Microsoft gets full access to the innovations. “As they innovate even at the system level, we get access to all of it,” CEO Satya Nadella explained on anewly released interviewwith podcaster Dwarkesh Patel, describing plans to adopt OpenAI’s designs and then extend them for Microsoft’s own purposes.

Under a revised partnership agreement, Microsoft secured intellectual property rights to OpenAI’s chip designs while maintaining access to the company’s AI models through 2032. The only carve-out? OpenAI’s consumer hardware, which the ChatGPT maker presumably wants to develop and sell independently.

Source: Techcrunch

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