AI Daily: OpenAI to start mass production of own AI chips

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:

AI CHIPS PRODUCTION: Microsoft (MSFT)-backed OpenAI is set to produce its own artificial intelligence chip for the first time next year, as the ChatGPT maker attempts reduce its reliance on chip giant Nvidia (NVDA), The Financial Times’ Michael Acton and Cristina Criddle report. The chip, which is co-designed with Broadcom (AVGO), will ship next year, according to multiple people familiar with the matter.

CHIP RENTAL: Nvidia (NVDA) reached an agreement this summer to rent 10,000 of its artificial intelligence chips from cloud provider Lambda for $1.3B over four years, and a separate $200M deal to rent 8,000 more chips over an unspecified timeframe, The Information reports, citing a person with direct knowledge of the deals. Nvidia is now Lambda’s biggest customer ahead of the company’s initial public offering, according to the website, which adds that Lambda’s business and concentrated customer base resembles CoreWeave (CRWV).

ROBOTAXIS: Pony AI (PONY) announced a partnership with Mowasalat, Qatar’s largest transportation service provider, together deploying autonomous vehicles on the country’s roads. This collaboration further expands its presence in the Middle East, now covering Dubai, Qatar, and other key markets. Under this partnership, Pony.ai’s Robotaxis have recently begun testing on public roads in Doha, the capital of Qatar. This initial phase, conducted with safety operators onboard, marks a milestone in localizing autonomous driving technology for Qatar’s driving environment. The trials are focused on adapting Pony.ai’s autonomous driving stacks to the nation’s weather, road infrastructure, and traffic conditions.