OpenAI is set to introduce its first custom artificial intelligence chip next year in collaboration with U.S. semiconductor giant Broadcom, according to a report by the Financial Times. The move positions the ChatGPT maker among a growing list of tech firms designing their own silicon to keep up with surging AI demands.

Internal Use, Not for Sale

Sources familiar with the matter revealed that OpenAI plans to deploy the chip internally rather than make it commercially available to customers. While Reuters has not independently confirmed the development, the news highlights OpenAI’s growing push to gain control over its hardware ecosystem. Neither OpenAI nor Broadcom has issued official comments on the report.

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AI Boom Driving Chip Race

OpenAI, widely credited for mainstreaming generative AI with tools like ChatGPT, consumes vast computing power to train and operate its models. Last year, reports indicated that the company was already working with Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) to develop its first in-house chip, while also utilising AMD chips alongside Nvidia processors to manage rising infrastructure needs.

Reducing Nvidia Dependence

In February, sources told Reuters that OpenAI was advancing its plan to reduce reliance on Nvidia by developing its own silicon. The company was reportedly finalising the design of its first chip, with plans to send it to TSMC for fabrication. This initiative mirrors a trend followed by industry giants like Google, Amazon, and Meta, who have built custom chips to power their AI operations.

Broadcom’s Billion-Dollar AI Bet

Broadcom’s Chief Executive Officer, Hock Tan, recently signalled that the company expects AI-related revenue to grow significantly in fiscal 2026. He disclosed that Broadcom secured over $10 billion in AI infrastructure orders from a new customer, though he did not reveal its identity. The firm order, Tan said, marked the client’s transition into a qualified customer. Earlier this year, Tan hinted that four new customers were working closely with Broadcom to develop custom chips, in addition to its three existing large accounts.

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A New Era in AI Hardware

OpenAI’s entry into the chipmaking race signals a broader shift in the AI landscape, where control over hardware is becoming just as critical as breakthroughs in software. By investing in its own silicon, OpenAI aims to boost performance, reduce costs, and ensure a steady supply as competition intensifies in the global AI arms race.