Artificial intelligence (AI) giant OpenAI is going all-in on producing and deploying its own AI chips next year, with support from semiconductor company Broadcom (AVGO). The news was first reported by the Financial Times, citing people familiar with the matter. The ChatGPT maker plans to use these chips for its internal operations rather than selling them to outside customers.
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Rumors about OpenAI’s custom chip efforts have been circulating for some time. Back in February, reports suggested that OpenAI was seeking to reduce its reliance on chip giant Nvidia (NVDA) by exploring new suppliers to help develop its first generation of in-house AI processors.
Here’s Why OpenAI Is Building Its Own Chips
OpenAI is following in the footsteps of tech giants like Alphabet (GOOGL), Meta (META), and Amazon (AMZN), which have also developed custom chips to address rising demand from large-scale AI workloads.
Training and operating large language models (LLMs) require enormous amounts of computing power. By producing its own chips, OpenAI aims to reduce dependence on external suppliers, lower costs, and strengthen its long-term scalability.
OpenAI Could be Broadcom’s 4th Major Customer
After reporting strong second-quarter earnings yesterday, Broadcom CEO Hock Tan stated that the company has secured a large “fourth customer” for its AI infrastructure products. Tan added that Broadcom expects AI-related revenue growth to “improve significantly” in FY26, fueled by more than $10 billion in infrastructure orders from this new customer.
While Tan did not disclose the name, Financial Times sources suggest that the client is OpenAI. Broadcom already benefits from three undisclosed large clients who have been major contributors to its AI revenue growth.
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