(Reuters) -OpenAI is set to produce its first artificial intelligence chip next year in partnership with U.S. semiconductor giant Broadcom, the Financial Times reported on Thursday, citing people familiar with the matter.
OpenAI plans to put the chip to use internally rather than make it available to external customers, the FT report said, citing one person close to the project.
Reuters could not immediately verify the report.
OpenAI and Broadcom did not immediately respond to Reuters’ requests for comment after regular business hours.
OpenAI, which helped commercialize generative AI capable of producing human-like responses to queries, relies on substantial computing power to train and run its systems.
Last year, Reuters reported that OpenAI was working with Broadcom and Taiwan Semiconductor Manufacturing Co to develop its first in-house chip to power its artificial intelligence systems, while also incorporating AMD chips alongside Nvidia chips to meet the surge in infrastructure demands.
At the time, OpenAI had examined a range of options to diversify chip supply and reduce costs.
In February, Reuters reported about OpenAI pushing ahead on its plan to reduce its reliance on Nvidia, for its chip supply by developing its first generation of in-house AI silicon.
The ChatGPT maker was finalizing the design for its first in-house chip in the next few months and planned to send it for fabrication at TSMC, sources had told Reuters.
Broadcom CEO Hock Tan said on Thursday that the company expects artificial intelligence revenue growth for fiscal 2026 to “improve significantly”, after securing more than $10 billion in AI infrastructure orders from new customer, without naming it.
A new prospect placed a firm order last quarter, making it into a qualified customer, Tan said on an earnings call.
Tan earlier this year had hinted at four new potential customers who were “deeply engaged” with the company to create their own custom chips, in addition to its three existing large clients.
OpenAI’s move follows efforts by Google, Amazon and Meta, which have built custom chips to handle AI workloads, as demand for computing power to train and operate AI models surges.
Semiconductor darling Broadcom teases higher growth after starting production on OpenAI chip
Investors had a watchful eye on Wall Street’s latest $1 trillion tech obsession, which has seen its shares rally 32% year-to-date. The company’s stock has grown to command a fantastic premium as a result of its fast growth, striking comparisons with chip giant Nvidia (NVDA) .
Some investors worried that the company could put out a letdown, especially after a series of so-so results from similarly-situated semiconductor and AI-focused stock plays. However, Broadcom is in the unusual position of bucking industry-wide fatigue, at least in the last quarter. Instead of reporting slowing growth, it anticipates even faster growth in the future.
In its last quarterly performance, the company’s revenue grew 20%. In this performance, it grew 22%. Management now guides for the coming quarter’s revenue growth to be 24%, while expecting adjusted EBITDA to still land at 67%, a sign that its margins and growth are durable.