OpenAI is developing its first custom AI chip with Broadcom and TSMC

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OpenAI

🤝 OpenAI plans to develop AI inference chip

OpenAI is developing its first custom AI chip with Broadcom and TSMC, while diversifying its chip suppliers to include AMD alongside NVIDIA.

Who's building it?

• Team: 20 engineers Includes former Google TPU designers.

• Designing: Partnering with Broadcom in Partnership.

• Manufacturing: TSMC.

Why not build their own factories?

• To Leverage expertise of industry leaders.

• Faster path to market for 2026 target.

What about current plans?

• Adding AMD's MI300X processors to infrastructure

• Reducing dependence on Nvidia's GPUs

• Expanding supplier base for more flexibility

• Strategic move to manage compute costs

Why now?

• Faces potential $5B loss this year, despite revenue at $3.7B

• Mounting compute costs driving decision

• Need for more efficient AI infrastructure

What's at stake?

• AI industry faces unprecedented chip demand

• Hardware strategy could determine market leaders

• Race for compute power intensifies

This strategic shift could redefine OpenAI's position in the AI race and potentially transform the industry's hardware landscape.

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