OpenAI partners with Broadcom to build AI chips: report
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4 weeks ago
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- Microsoft-backed (NASDAQ:MSFT) startup OpenAI has apparently scrapped plans to build a global network of foundries, and has instead opted to design in-house chips, according to a report by Reuters.
- OpenAI is working with Broadcom (NASDAQ:AVGO) and Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to design its own chips to power artificial intelligence applications, the report said. These chips will focus on inference needs. Broadcom helped OpenAI secure manufacturing capacity with TSMC to begin producing the chips in 2026.
- In the meantime, OpenAI will continue to power its AI ambitions through chips by Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD), the report said. However, the surging demand for Nvidia’s GPUs has prompted OpenAI to search for alternatives as well.
- OpenAI has reportedly been in discussions with Broadcom to develop an AI server chip since at least July.
- Broadcom shares have jumped 3.5% this afternoon. TSMC was up 1.3% while Microsoft inched up 1%. Nvidia ticked up about 1%, while AMD edged 2.4% higher.