UNITED STATES NEWS

AI chips are hot. Here’s what they are, what they’re for and why investors see gold

May 31, 2023, 10:31 PM

SAN FRANCISCO (AP) —

The hottest thing in technology is an unprepossessing sliver of silicon closely related to the chips that power video game graphics. It’s an artificial intelligence chip, designed specifically to make building AI systems such as ChatGPT faster and cheaper.

Such chips have suddenly taken center stage in what some experts consider an AI revolution that could reshape the technology sector — and possibly the world along with it. Shares of Nvidia, the leading designer of AI chips, more than $1 trillion on Tuesday.

SO WHAT ARE AI CHIPS, ANYWAY?

That isn’t an easy question to answer. “There really isn’t a completely agreed upon definition of AI chips,” said Hannah Dohmen, a research analyst with the Center for Security and Emerging Technology.

In general, though, the term encompasses computing hardware that’s specialized to handle AI workloads — for instance, by “training” AI systems to tackle difficult problems that can choke conventional computers.

VIDEO GAME ORIGINS

Three entrepreneurs founded Nvidia in 1993 to push the boundaries of computational graphics. Within a few years, the company had developed a new chip called a graphics processing unit, or GPU, which dramatically sped up both development and play of video games by performing multiple complex graphics calculations at once.

That technique, known formally as parallel processing, would prove key to the development of both games and AI. Two graduate students at the University of Toronto used a GPU-based neural network to win a prestigious 2012 AI competition called ImageNet by identifying photo images at much lower error rates than competitors.

The win kick-started interest in AI-related parallel processing, opening a new business opportunity for Nvidia and its rivals while providing researchers powerful tools for exploring the frontiers of AI development.

MODERN AI CHIPS

Eleven years later, Nvidia is the dominant supplier of chips for building and updating AI systems. One of its recent products, the H100 GPU, packs in 80 billion transistors — about 13 million more than Apple’s latest high-end processor for its MacBook Pro laptop. Unsurprisingly, this technology isn’t cheap; at one online retailer, the H100 lists for $30,000.

Nvidia doesn’t fabricate these complex GPU chips itself, a task that would require enormous investments in new factories. Instead it relies on Asian chip foundries such as Taiwan Semiconductor Manufacturing Co. and Korea’s Samsung Electronics.

Some of the biggest customers for AI chips are cloud-computing services such as those run by Amazon and Microsoft. By renting out their AI computing power, those services make it possible for smaller companies and groups that couldn’t afford to build their own AI systems from scratch to use cloud-based tools to help with tasks that can range from drug discovery to customer management.

OTHER USES AND COMPETITION

Parallel processing has many uses outside of AI. A few years ago, for instance, Nvidia graphics cards were in short supply because cryptocurrency miners, who set up banks of computers to solve thorny mathematical problems for bitcoin rewards, had snapped up most of them. That problem faded as the cryptocurrency market collapsed in early 2022.

Analysts say Nvidia will inevitably face tougher competition. One potential rival is Advanced Micro Devices, which already faces off with Nvidia in the market for computer graphics chips. AMD has recently taken steps to bolster its own lineup of AI chips.

Nvidia is based in Santa Clara, California. Co-founder Jensen Huang remains the company’s president and chief executive.

United States News

Associated Press

Atlanta will pay $3.75M to family of Nebraska man who died after being handcuffed and held face down

ATLANTA (AP) — The city of Atlanta will pay $3.75 million to the family of a Nebraska man who died after police handcuffed him face down. The City Council approved the settlement Monday, The Atlanta Journal-Constitution reported, after the Fulton County medical examiner determined that Ricardo Dorado Jr.’s death on Aug. 21, 2022 was a […]

1 hour ago

Associated Press

2 Army soldiers killed, 12 injured in crash of military transport vehicle in Alaska

ANCHORAGE, Alaska (AP) — Two U.S. Army soldiers were killed and 12 others injured after a military transport vehicle flipped on a dirt road leading to a training area in Alaska, officials said. The single-vehicle accident happened Monday as the soldiers headed to the Yukon Training Area near Salcha, or about 30 miles (48 kilometers) […]

1 hour ago

File - Construction workers move equipment on Jan. 17, 2023, in New York. On Tuesday, the Labor Dep...

Associated Press

Another sign that the US job market remains hot after US job openings rise unexpectedly in August

WASHINGTON (AP) — U.S. job openings rose unexpectedly in August, another sign the U.S. labor market remains strong in the face of higher interest rates. American employers posted 9.6 million job openings in August, up from 8.9 million in July, the Labor Department said Tuesday. Economists had expected only another 8.9 million vacancies. The number […]

3 hours ago

Associated Press

Stellantis recalls nearly 273,000 Ram trucks because the rear view camera image may show on screen

DETROIT (AP) — Stellantis is recalling nearly 273,000 trucks in the U.S. because the radio software can stop the rear view camera image from being displayed. The recall a nnounced Tuesday by U.S. safety regulators covers certain Ram 1500 pickup trucks and some Ram 3500 chassis cabs from the 2022 and 2023 model years. Also […]

3 hours ago

Associated Press

Parents will stand trial in 2021 Michigan school shooting that killed 4 students

DETROIT (AP) — The Michigan Supreme Court turned down an appeal Tuesday, clearing the way for the parents of the Oxford High School shooter to face trial on involuntary manslaughter charges. James and Jennifer Crumbley are accused of making a gun available to Ethan Crumbley and ignoring his mental health needs. The state appeals court […]

5 hours ago

Associated Press

11-year-old shoots, injures 2 teens following altercation at Florida Pop Warner football practice

APOPKA, Fla. (AP) — An 11-year-old boy retrieved a gun from an unlocked box in his mother’s vehicle and shot two 13-year-olds following an altercation that began during a Pop Warner football practice in central Florida, police said Tuesday. The child fired one shot on Monday night, hitting one teen in the arm and the […]

5 hours ago

Sponsored Articles

Home moving relocation in Arizona 2023...

BMS Moving

Tips for making your move in Arizona easier

If you're moving to a new home in Arizona, use this to-do list to alleviate some stress and ensure a smoother transition to your new home.

...

Mayo Clinic

Game on! Expert sports physicals focused on you

With tryouts quickly approaching, now is the time for parents to schedule physicals for their student-athlete. The Arizona Interscholastic Association requires that all student-athletes must have a physical exam completed before participating in team practices or competition.

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

AI chips are hot. Here’s what they are, what they’re for and why investors see gold