OpenAI to Launch First AI Chip with Broadcom in 2026
OpenAI is set to produce its first artificial intelligence chip next year in collaboration with US semiconductor giant Broadcom, according to a report from the Financial Times citing people familiar with the matter. The chip will be used internally to power OpenAI’s own systems rather than being sold to outside customers, the report said.
Neither OpenAI nor Broadcom has responded to requests for comment. Reuters could not independently verify the Financial Times report.
OpenAI, known for commercialising generative AI tools such as ChatGPT, requires vast amounts of computing power to train and operate its models. Developing an in-house chip is expected to help the company diversify its supply chain, lower costs, and reduce its dependence on a single chip provider.
Efforts to Lessen Dependence on Nvidia
In recent years, OpenAI has worked with both Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) to design its first proprietary AI chip. The company has also relied on chips from AMD and Nvidia to keep up with surging demand.
In February, Reuters reported that OpenAI was pushing ahead with its first in-house silicon to cut reliance on Nvidia. At the time, sources said the company was finalising the chip design and planned to send it to TSMC for fabrication.
The move places OpenAI among a growing list of major technology companies—such as Google, Amazon, and Meta—that have invested in developing custom chips to manage increasingly complex AI workloads.
Broadcom Sees Major Growth from AI Partnerships
Broadcom CEO Hock Tan told investors on Thursday that the company expects artificial intelligence revenue growth in fiscal 2026 to “improve significantly.” He confirmed Broadcom had secured more than $10 billion in AI infrastructure orders from a new customer, without naming the firm.
Tan also revealed that a new prospect placed a firm order last quarter, making it a qualified customer. Earlier this year, he said four potential customers were “deeply engaged” with Broadcom to create custom chips, in addition to its three existing major clients.
If confirmed, OpenAI’s partnership with Broadcom would mark a strategic step in the company’s efforts to control its computing infrastructure while competing with rivals building their own AI hardware.
with inputs from Reuters