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Foxconn warns of an AI chip shortage

Taiwan’s Foxconn, Apple’s biggest iPhone assembler and the world’s largest contract electronics maker, expects its business this year to be “slightly better” than last year but is facing a shortage of chip AI servers.

The company’s chairman, Liu Young-way, said that the demand for artificial intelligence (AI) servers will “of course” be good, but global economic uncertainty given geopolitical problems will affect consumer product demand.

The shortage of chips for AI servers is a significant concern for the technology industry

AI is becoming increasingly important in many industries, and the shortage of chips could slow down the development of AI applications. The company is a major supplier of AI servers to companies such as Google, Amazon, and Microsoft. The shortage of chips could lead to a delay in the production of AI servers, which could have a significant impact on the company’s revenue. The shortage of chips for AI servers is not unique to Foxconn. Many other companies are also facing a similar problem.

Sam Altman wants to solve the great AI chip shortage himself

Sam Altman does not want a minor issue like a shortage of microchips to cause OpenAI to fail.

But he and many other executives at IT companies hoping to replicate OpenAI\’s achievements are having a great deal of trouble because of shortages of these chips, which are essential to the development of AI.

The demand for graphics processing units (GPUs) and other high-end chips has skyrocketed since ChatGPT launched, and the current supply lines are unable to meet the demand.

Altman even went so far as to refer to the crisis as \”brutal\” in November, and Microsoft even included the shortages as a possible risk factor that investors should take into consideration.

These chips are now purchased from a small number of firms that lead the AI processor market. Because of the demand for its highly desired H100 graphics processing units (GPUs), which may cost over $40,000 each, Nvidia has the most clout in the industry.

However, it seems like Altman is ready to start producing his own and is tired of relying on them constantly.