AI pioneer OpenAI set to debut its inaugural AI chip in collaboration with Broadcom by 2026, according to Financial Times reports.
OpenAI Partners with Broadcom to Develop In-House AI Chip
OpenAI, the company behind the popular generative AI model, is set to expand its horizons in the world of artificial intelligence (AI) technology. In a significant move, OpenAI has partnered with U.S. semiconductor giant Broadcom to produce an AI chip next year.
This partnership, previously reported by our website last year, comes at a time when demand for computing power to train and operate AI models is surging. The news follows a trend set by tech giants like Google, Amazon, and Meta, who have built custom chips to handle AI workloads.
OpenAI plans to send its first in-house chip for fabrication at Taiwan Semiconductor Manufacturing Co (TSMC), a leading semiconductor manufacturer. However, the identity of the first customer who placed a firm order for OpenAI's AI chip remains undisclosed in the available search results.
Broadcom, on the other hand, has been busy securing orders for its AI infrastructure. Last quarter, a new customer placed a firm order, making it into a qualified customer for Broadcom. The company has also secured more than $10 billion in AI infrastructure orders from a new customer without naming it.
Broadcom CEO Hock Tan expects artificial intelligence revenue growth for fiscal 2026 to "improve significantly". He hinted at four new potential customers who are "deeply engaged" with the company to create their own custom chips, in addition to its three existing large clients.
Previously, OpenAI had been examining a range of options to diversify chip supply and reduce costs. Last year, our website reported that OpenAI was working with Broadcom, TSMC, and was also using AMD chips alongside Nvidia chips to develop its first in-house chip.
As OpenAI's systems require substantial computing power for training and operation, the development of an in-house chip is a strategic move to reduce reliance on external suppliers like Nvidia. In the next few months, OpenAI is finalizing the design for its first in-house chip, which is intended for internal use, not for external customers.
However, both OpenAI and Broadcom did not respond to our website's requests for comment after regular business hours. The recent Financial Times report about this partnership could not be verified by our website at this time.
OpenAI is known for commercializing generative AI capable of producing human-like responses to queries. The new AI chip, once developed, is expected to play a crucial role in powering these AI systems and driving OpenAI's future advancements in AI technology.
