OpenAI Just Gave Taiwan Semiconductor Investors Great News
OpenAI is collaborating with Taiwan Semi for its own custom chips.
When it comes to artificial intelligence (AI) chip stocks, my guess is that names such as Nvidia, Broadcom, or Advanced Micro Devices come to mind first. While all three companies are playing an integral role supplying data centers with the latest AI hardware, these chip designers have to give a lot of credit to the foundry services of Taiwan Semiconductor Manufacturing (NYSE: TSM).
One thing that makes Taiwan Semi so unique is that its services aren't in demand just from traditional semiconductor companies. In fact, OpenAI just tapped Taiwan Semi for an important collaboration. Let's explore how OpenAI and TSMC are working together and assess why this partnership could be lucrative for Taiwan Semi in the long run.
OpenAI's flagship product is a large language model (LLM) called ChatGPT, which uses generative AI to answer queries of all kinds at fast speeds. While ChatGPT's seemingly infinite knowledge gives it the appearance of a modern-day online encyclopedia, there are actually quite a few technical processes going on in the background.
