OpenAI is set to invest $10 billion in partnership with US semiconductor giant Broadcom to develop its own artificial intelligence chips, according to reports from the Financial Times and Wall Street Journal. The collaboration aims to reduce OpenAI’s heavy reliance on Nvidia, whose processors currently dominate the global AI sector. The first batch of custom chips is expected to roll out next year and will be deployed internally by OpenAI to train and operate models such as ChatGPT, along with other AI-powered products. Broadcom had hinted at landing a major contract last week, though details of the deal only surfaced later. For the California-based chipmaker, the agreement marks a major boost, with OpenAI emerging as one of its biggest customers. So far, Nvidia has been the primary supplier of high-performance processors to major cloud providers including Amazon Web Services, Google, Microsoft, and Oracle. Just recently, Oracle announced plans to acquire over $40 billion worth of Nvidia chips to power its new data centre linked to the “Stargate Project,” an initiative by AI companies to expand global computing infrastructure. Earlier this year, signs of OpenAI’s in-house chip ambitions began to surface, as competition for processing power intensified. Tech giants like Google, Amazon, and Microsoft are already designing their own AI chips to diversify beyond Nvidia. Despite this, Nvidia remains in high demand. The company reported a 56% rise in quarterly sales last week, underscoring its market strength. Meanwhile, reports suggest the Trump administration could ease some trade restrictions, potentially reopening major international markets to Nvidia’s latest chips.
OpenAI plans $10bn investment in building its own AI chips
