Report: OpenAI will launch its own AI chip next year

"OpenAI is gearing up to launch its own AI chip, part of a broader industry effort to gain independence from third-party semiconductor companies. The ChatGPT-maker will start mass-producing its first in-house graphics processing unit (GPU) in partnership with US chipmaker Broadcom next year, according to a Thursday from the Financial Times. The chip will reportedly be used internally by OpenAI rather than sold to other businesses."

"Originally invented to render video game graphics, GPUs have become the technological cornerstone of the ongoing generative AI boom, fueling chatbots like ChatGPT, Gemini, and Claude. The market has thus far been dominated by Nvidia, which is currently as the wealthiest company in the world thanks to the surging demand for its industry-leading chips like the A100 and H100. Other chipmakers, like AMD and Broadcom, have also seen significant growth."

OpenAI will begin mass-producing its first in-house GPU with Broadcom next year for internal use, supported by a likely $10 billion partnership. Broadcom indicated a deal with an unnamed customer to build new AI chips, and analysts suspect OpenAI as the partner. The move reflects a wider industry trend of AI companies starting their own chipmaking operations to reduce reliance on third-party semiconductor suppliers amid global supply constraints. GPUs, originally for gaming, now power generative AI and have driven Nvidia's dominance, while competitors such as AMD and Broadcom have also grown significantly.

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