OpenAI to launch first in-house AI chip with Broadcom in 2026: Report

OpenAI is preparing to produce its first artificial intelligence chip in partnership with US semiconductor giant Broadcom, according to a Financial Times report citing people familiar with the development. The new silicon is expected to be ready next year and will be used internally rather than sold to outside customers.

The move highlights OpenAI’s push to reduce dependence on Nvidia, whose GPUs have become the industry standard for training and operating large language models. Reuters previously reported that OpenAI was working with both Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) on developing the chip, while also using processors from AMD alongside Nvidia to handle soaring demand for computing power.

One person close to the project confirmed that OpenAI’s first-generation chip design is nearing completion and will be sent to TSMC for fabrication.

Broadcom CEO Hock Tan said on Thursday that the company expects AI revenue growth to “improve significantly” in fiscal 2026 after winning more than $10 billion in infrastructure orders from a new customer, widely believed to be OpenAI. “A new prospect placed a firm order last quarter, making it into a qualified customer,” Tan told investors during an earnings call, without naming the buyer.

Earlier this year, Tan had hinted that Broadcom was working closely with four potential new customers on custom chips, alongside its three existing major clients.

OpenAI’s decision mirrors similar efforts by tech giants including Google, Amazon, and Meta, which have all developed proprietary chips to better control costs and performance for their AI workloads. With the launch of its own hardware, OpenAI is expected to gain greater flexibility in scaling future models while maintaining tighter control over costs.

The timing comes as competition intensifies in the AI sector, where training increasingly powerful models requires vast computing resources. OpenAI has previously said its long-term strategy includes diversifying supply chains to reduce reliance on a single chip provider.