OpenAI is partnering with US semiconductor firm Broadcom in a $10 billion deal to design and produce its own artificial intelligence chips, according to reports from the Financial Times and Wall Street Journal. The move is aimed at reducing the company’s reliance on Nvidia, whose processors remain the backbone of today’s AI industry.
The new custom chips are expected to debut next year, powering OpenAI’s models such as ChatGPT alongside other AI products. Insiders said the processors will be used primarily for internal training and deployment.
Broadcom hinted last week at securing a major contract, with confirmation of OpenAI’s involvement emerging later. The partnership positions OpenAI as one of Broadcom’s largest customers, marking a significant win for the California-based chipmaker.
Nvidia has long dominated the market for high-performance processors used by major cloud providers including Amazon Web Services, Google, Microsoft, and Oracle. Oracle recently unveiled plans to purchase more than $40 billion worth of Nvidia chips for a new data centre linked to the so-called “Stargate Project,” an initiative by AI companies to scale up global computing infrastructure.
Earlier this year, reports indicated that OpenAI was exploring in-house chip development, a strategy already being pursued by Google, Amazon, and Microsoft in an effort to diversify their supply chains away from Nvidia.
Despite such moves, Nvidia’s market strength remains unshaken. The company reported a 56% jump in quarterly sales last week, underscoring demand for its technology. Meanwhile, reports suggest the Trump administration may relax certain trade restrictions, potentially reopening major international markets for Nvidia’s latest products.
The post OpenAI strikes $10bn chip deal with broadcom to cut Nvidia dependence appeared first on Profit by Pakistan Today.