OpenAI taps Broadcom and TSMC to build new AI hardware

OpenAI is developing its first proprietary chip to power its AI systems in collaboration with Broadcom and TSMC, reports Reuters. At the same time, the company is expanding its AI chip offerings with AMD processors to meet rapidly growing infrastructure demand alongside Nvidia chips. OpenAI had considered various options to diversify its chip supply and reduce costs, including building its own network of chip factories, but this has been ruled out for the time being due to the high cost and time involved. Instead, OpenAI plans to focus on developing its own chips. Broadcom is helping OpenAI with chip development and securing manufacturing capacity at TSMC.