Comment on OpenAI is taking a page out of Big Tech's playbook by reportedly building its own chips

OpenAI is taking a page out of Big Tech's playbook by reportedly building its own chips

OpenAI CEO Sam Altman.Jason Redmond/AFP/Getty ImagesOpenAI is reportedly teaming up with Broadcom and TSMC to build custom AI chips, per Reuters.It would see OpenAI joining tech giants like Meta, Amazon, and Google in designing their own chips.OpenAI could have its custom chips by 2026 but is reportedly dropping plans to build its own fabs.Building custom AI chips has long been the preserve of a select few tech companies — but OpenAI might be about to join the party.The AI startup is in talks with semiconductor firms Broadcom and TSMC to design and produce its own AI chips, sources told Reuters on Wednesday.OpenAI has reportedly assembled a team headed by former Google engineers to lead the project and has secured manufacturing capacity with TSMC, the world's largest contract chipmaker, to build the first chips in 2026.However, Reuters reported that OpenAI has backed away from ambitious plans to build its own network of chip factories, known as fabs.OpenAI declined to comment when approached by BI.The move to design chips in-house would give OpenAI greater control of its supply chain and the chance to create chips better suited to its needs."By working in tandem with Broadcom, OpenAI can design chips that are specifically tailored to power its models, offering more speed and greater energy efficiency," Kate Leaman, chief market analyst at AvaTrade, told Business Insider."Nevertheless, this collaboration doesn't just concern efficiency — it's also about control.

 

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