OpenAI is planning to start producing its own artificial intelligence chip beginning in 2026, collaborating with Broadcom Inc (NASDAQ:AVGO), according to a report by the Financial Times citing sources familiar with the matter.
The initiative is part of OpenAI’s strategy to meet the surging computing demands of its AI models while reducing dependence on Nvidia hardware.
Broadcom CEO Hock Tan revealed on Thursday that the company had secured a new customer with a $10 billion order commitment. The Financial Times report identified this client as OpenAI. Unlike other Broadcom customers, OpenAI intends to use the chip exclusively for internal operations rather than selling it externally.
OpenAI began working with Broadcom on AI chip development last year, but the timeline for large-scale production had not been previously disclosed. The move aligns with a broader trend among major tech firms, with companies like Google, Amazon, and Meta designing proprietary chips optimized for AI workloads.
The announcement came shortly after Broadcom reported strong quarterly results and issued an optimistic outlook for the current quarter, prompting a 4.5% rise in its shares during after-hours trading.
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