Feed: Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
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Title: OpenAI is reportedly producing its own AI chips starting next year

Date: Fri, 05 Sep 2025 11:39:24 +0000
Link: https://www.engadget.com/ai/openai-is-reporte...

OpenAI is gearing up to start the mass production of its own AI chips next
year to be able to provide the massive computing power its users need and to
lessen its reliance on NVIDIA, according to the Financial Times. The company
reportedly designed the custom AI chip with US semiconductor maker Broadcom,
whose CEO recently announced that it has a new client that put in a whopping
$10 billion in orders. It didn't name the client, but the Times' sources
confirmed that it was OpenAI, which apparently doesn't have plans to sell the
chips and will only be using them internally.

Reuters reported way back in 2023 that OpenAI was already exploring the
possibility of making its own AI chips after Sam Altman blamed GPU shortages
for the company API's speed and reliability. The news organization also
previously reported that OpenAI was working with both Broadcom and Taiwan
Semiconductor Manufacturing Co. (TSMC) to create its own product. The Times
didn't say whether OpenAI still has an ongoing partnership with TSMC.

After GPT-5 came out, Altman announced the changes OpenAI is implementing in
order to keep up with "increased demand." In addition to prioritizing paid
ChatGPT users, he said that OpenAI was going to double its compute fleet
"over the next 5 months." Making its own chips will address any potential GPU
shortages the company may encounter in doubling its fleet, and it could also
save the company money. The Times says custom AI chips called "XPUs" like the
one OpenAI is reportedly developing will eventually take a big share of the
AI market. At the moment, NVIDIA is still the leading name in the industry.
It recently revealed that its revenue for the second quarter ending on July
27 rose 56 percent compared to the same period last year, and it didn't even
have to ship any H20 chips to China.

This article originally appeared on Engadget at
https://www.engadget.com/ai/openai-is-reporte...
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