OpenAI is preparing to produce its first artificial intelligence chip next year in partnership with U.S. semiconductor leader Broadcom, according to the Financial Times, News.Az reports.
Sources familiar with the matter told the publication that the chip will be used internally by OpenAI and will not be offered to external customers.
OpenAI, which helped commercialize generative AI capable of producing human-like responses to queries, relies on substantial computing power to train and run its systems.
Last year, Reuters reported that OpenAI was working with Broadcom and Taiwan Semiconductor Manufacturing Co to develop its first in-house chip to power its artificial intelligence systems, while also incorporating AMD chips alongside Nvidia chips to meet the surge in infrastructure demands.
At the time, OpenAI had examined a range of options to diversify chip supply and reduce costs.
In February, Reuters reported about OpenAI pushing ahead on its plan to reduce its reliance on Nvidia, for its chip supply by developing its first generation of in-house AI silicon.
The ChatGPT maker was finalizing the design for its first in-house chip in the next few months and planned to send it for fabrication at TSMC, sources had told Reuters.
Broadcom CEO Hock Tan said on Thursday that the company expects artificial intelligence revenue growth for fiscal 2026 to "improve significantly", after securing more than $10 billion in AI infrastructure orders from new customer, without naming it.
A new prospect placed a firm order last quarter, making it into a qualified customer, Tan said on an earnings call.
Tan earlier this year had hinted at four new potential customers who were "deeply engaged" with the company to create their own custom chips, in addition to its three existing large clients.
OpenAI's move follows efforts by Google, Amazon and Meta, which have built custom chips to handle AI workloads, as demand for computing power to train and operate AI models surges.
