OpenAI to Launch First AI Chip in 2026 in Partnership with Broadcom

OpenAI to launch its first AI chip in 2026 with Broadcom, FT reports

Sept 4 (Reuters) - OpenAI is set to produce its first artificial intelligence chip next year in partnership with U.S. semiconductor giant Broadcom (AVGO.O), opens new tab, the Financial Times reported on Thursday, citing people familiar with the matter. OpenAI plans to put the chip to use internally rather than make it available to external customers, the FT report said, citing one person close to the project. Reuters could not immediately verify the report. OpenAI and Broadcom did not immediately respond to Reuters' requests for comment after regular business hours. 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 (2330.TW), opens new tab to develop its first in-house chip to power its artificial intelligence systems, while also incorporating AMD (AMD.O), opens new tab chips alongside Nvidia (NVDA.O), opens new tab 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 (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab and Meta (META.O), opens new tab, which have built custom chips to handle AI workloads, as demand for computing power to train and operate AI models surges. Reporting by Disha Mishra in Bengaluru; Editing by Alan Barona and Sherry Jacob-Phillips Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI set to start mass production of its own AI chips with Broadcom in 2026, FT reports

Sept 4 (Reuters) - OpenAI is set to produce its first artificial intelligence chip next year in partnership with U.S. semiconductor giant Broadcom (AVGO.O), opens new tab, the Financial Times reported on Thursday, citing people familiar with the partnership. OpenAI and Broadcom did not immediately respond to Reuters' requests for comment after regular business hours. Reuters could not immediately verify the report. OpenAI planned to put the chip to use internally rather than make it available to external customers, the report added, citing one person close to the project. Reuters had reported in February about OpenAI pushing ahead on its plan to reduce its reliance on Nvidia (NVDA.O), opens new tab, opening a new tab for its chip supply by developing its first generation of in-house AI silicon. Broadcom CEO Hock Tan said earlier on Thursday the company had secured more than $10 billion in AI infrastructure orders from a new customer, without naming it. 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. Reporting by Disha Mishra in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI set to start mass production of its own AI chips with Broadcom, FT reports

Sept 4 (Reuters) - OpenAI is set to produce its own artificial intelligence chip for the first time next year, as the ChatGPT maker attempts to address insatiable demand for computing power and reduce its reliance on chip giant Nvidia (NVDA.O), opens new tab, the Financial Times reported on Thursday. The chip, co-designed with U.S. semiconductor giant Broadcom (AVGO.O), opens new tab, would ship next year, the report added, citing multiple people familiar with the partnership. Reporting by Disha Mishra in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

OpenAI set to start mass production of its own AI chips with Broadcom

OpenAI is set to produce its own artificial intelligence chip for the first time next year, as the ChatGPT maker attempts to address insatiable demand for computing power and reduce its reliance on chip giant Nvidia. The chip, co-designed with US semiconductor giant Broadcom, would ship next year, according to multiple people familiar with the partnership. Broadcom's chief executive Hock Tan on Thursday referred to a mystery new customer committing to $10bn in orders. OpenAI's move follows the strategy of tech giants such as Google, Amazon and Meta, who have designed their own specialised chips to run AI workloads. The industry has seen huge demand for the computing power to train and run AI models. OpenAI planned to put the chip to use internally, according to one person close to the project, rather than make them available to external customers. OpenAI last year began an initial collaboration with Broadcom, according to reports at the time, but the timeline for mass production of a successful chip design had previously been unclear. On a call with analysts, Tan announced that Broadcom had secured a fourth major customer for its custom AI chip business, as it reported earnings that topped Wall Street estimates. Broadcom does not disclose the names of these customers, but people familiar with the matter confirmed OpenAI was the new client. Broadcom and OpenAI declined to comment. Tan said the deal had lifted the company's growth prospects by bringing "immediate and fairly substantial demand", shipping chips for that customer "pretty strongly" from next year. The prospect that custom AI chips -- termed "XPUs" to contrast them with the "GPUs" designed by off-the-shelf chip suppliers such as Nvidia and AMD -- will take a growing share of the booming AI infrastructure market that has helped propel Broadcom's shares more than 30 per cent higher this year. Its shares rose 4.5 per cent in after market trading following the positive earnings report. Broadcom partnered with Google, for example, in developing its custom "TPU" AI chips. Ahead of Broadcom's earnings, HSBC analysts wrote that they expected to see much a higher growth rate from its custom chip business compared to Nvidia's GPU business in 2026. Nvidia continues to dominate the AI hardware space, with the Big Tech "hyperscalers" still representing a significant share of its customer base. But its growth has slowed relative to the astronomical figures it saw at the start of the AI investment boom. OpenAI chief executive Sam Altman has been vocal about the demand for more computing power to serve the number of businesses and consumers using products such as ChatGPT, as well as to train and run AI models. The company was one of the earliest customers for Nvidia's AI chips and has since proven to be a voracious consumer of its hardware. Last month, Altman said the company was prioritising compute "in light of the increased demand from [OpenAI's latest model] GPT-5" and planned to double its compute fleet "over the next 5 months".

OpenAI set to start mass production of its own AI chips with Broadcom in 2026: FT - The Economic Times

OpenAI is set to produce its first artificial intelligence chip next year in partnership with U.S. semiconductor giant Broadcom, the Financial Times reported on Thursday, citing people familiar with the partnership. OpenAI and Broadcom did not immediately respond to Reuters' requests for comment after regular business hours. Reuters could not immediately verify the report. OpenAI planned to put the chip to use internally rather than make it available to external customers, the report added, citing one person close to the project. Reuters had reported in February about OpenAI pushing ahead on its plan to reduce its reliance on Nvidia, opening a new tab for its chip supply by developing its first generation of in-house AI silicon. Broadcom CEO Hock Tan said earlier on Thursday the company had secured more than $10 billion in AI infrastructure orders from a new customer, without naming it. 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.

OpenAI To Mass-Produce 1st Proprietary AI Chip With Broadcom, Secures $10 Billion Deal: Report - Broadcom (NASDAQ:AVGO)

OpenAI is set to begin mass production of its first proprietary artificial intelligence chip next year through a partnership with Broadcom Inc. AVGO, marking a strategic shift away from its reliance on Nvidia Corp. NVDA amid surging demand for artificial intelligence computing power. Broadcom Secures $10 Billion Customer Deal Broadcom CEO Hock Tan confirmed during Thursday's earnings call that the semiconductor giant secured a fourth major customer committing to $10 billion in orders. The Financial Times sources identified OpenAI as the new client. The deal delivered "immediate and fairly substantial demand" that will boost chip shipments "pretty strongly" starting next year, according to Tan. Broadcom's shares jumped 4.58% to $306.10 in after-market trading following the positive earnings report. OpenAI and Broadcom did not immediately respond to Benzinga's request for comment. Strategic Move Toward Computing Independence OpenAI's custom chip initiative follows the playbook of tech giants including Alphabet Inc. GOOGL GOOG, Amazon.com Inc. AMZN and Meta Platforms Inc. META, which have developed specialized processors to handle AI workloads more efficiently than standard graphics processing units. The partnership began last year, but the timeline for mass production remained unclear until this week's announcement. OpenAI plans to use the chips internally rather than making them available to external customers, according to the FT report, addressing its massive compute requirements for ChatGPT's 700 million weekly users. See Also: Mitch McConnell Says Trump Tariffs-Ushered Era Has 'Similarities' With The 1930s: 'This Is The Most Dangerous Period Since Before World War Two' Market Impact on AI Infrastructure The custom chip development signals a potential shift in the AI hardware landscape, where Nvidia has maintained dominance. According to FT, HSBC analysts expect custom chip businesses to achieve higher growth rates than Nvidia's GPU business by 2026. OpenAI CEO Sam Altman recently emphasized the company's compute priorities, stating plans to double its compute fleet over the next five months to meet increased demand from the upcoming GPT-5 model. The development comes as OpenAI reportedly moves forward with a $10.3 billion secondary share sale at a $500 billion valuation, up from its previous $300 billion valuation established in April. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Meir Chaimowitz on Shutterstock.com AVGOBroadcom Inc $320.115.86% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 92.27 Growth 34.83 Quality 88.65 Value 9.54 Price Trend Short Medium Long Overview AMZNAmazon.com Inc $235.614.26% GOOGAlphabet Inc $232.490.60% GOOGLAlphabet Inc $232.210.67% METAMeta Platforms Inc $749.001.62% NVDANVIDIA Corp $171.300.40% Market News and Data brought to you by Benzinga APIs

OpenAI set to start mass production of its own AI chips with Broadcom in 2026, FT reports

(Reuters) -OpenAI is set to produce its first artificial intelligence chip next year in partnership with U.S. semiconductor giant Broadcom, the Financial Times reported on Thursday, citing people familiar with the partnership. OpenAI and Broadcom did not immediately respond to Reuters' requests for comment after regular business hours. Reuters could not immediately verify the report. OpenAI planned to put the chip to use internally rather than make it available to external customers, the report added, citing one person close to the project. Reuters had reported in February about OpenAI pushing ahead on its plan to reduce its reliance on Nvidia, opening a new tab for its chip supply by developing its first generation of in-house AI silicon. Broadcom CEO Hock Tan said earlier on Thursday the company had secured more than $10 billion in AI infrastructure orders from a new customer, without naming it. 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. (Reporting by Disha Mishra in Bengaluru; Editing by Alan Barona)