OpenAI is Developing In-House AI Chip with Broadcom and TSMC: Report

OpenAI is reportedly collaborating with Broadcom and TSMC to develop its first in-house chip designed to support its artificial intelligence (AI) systems. Additionally, it is incorporating AMD chips alongside Nvidia chips to meet growing infrastructure demands, Reuters reported, citing sources.

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Also Read: OpenAI Raises USD 6.6 Billion to Accelerate AI Research and Expansion

OpenAI Explores Custom Chip Development

OpenAI, the company behind ChatGPT, has reportedly explored various options to diversify chip supply and reduce costs. These options included building everything in-house and raising capital for an expensive plan to build a network of factories, or “foundries,” for chip manufacturing, according to the report.

However, the company has reportedly dropped the foundry plans due to the costs and time required to build such a network and will instead focus on in-house chip design efforts. As a major chip buyer, OpenAI’s decision to source from multiple chipmakers while developing its own custom chip could have broader implications for the tech industry.

Also Read: Microsoft, Dell, Google and Others Launch Initiatives to Propel AI Infrastructure and Innovation

Broadcom’s Role in OpenAI’s AI Chip Design

According to the report, OpenAI has been working with Broadcom for months to develop its first AI chip focused on inference. Broadcom assists companies like Alphabet’s Google in fine-tuning chip designs for manufacturing and supplies components that facilitate rapid data transfer on and off the chips. This capability is crucial for AI systems, which require tens of thousands of interconnected chips to work seamlessly together, the report noted citing sources.