OpenAI Partners With Broadcom to Develop Custom AI Chips for Future Models
OpenAI has officially partnered with semiconductor giant Broadcom to co-develop custom AI chips designed to supercharge its next generation of large language models. It’s a strategic move that goes far beyond just making results appear faster, as OpenAI aims to gain control over the hardware that powers AI, reduce dependency on Nvidia, and build the foundation for the technology that drives the next generation of AI capabilities, according to industry reports.
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OpenAI’s decision to work with Broadcom marks a big step from software to hardware, and together, they are developing chips and networking systems designed specifically for AI training and performance. These chips will be built to handle massive workloads efficiently, cutting power usage while bolstering speed, which is a key factor as models are getting bigger and more complex, data shows.
On the flip side, Broadcom will help with far more than just performance, as it will provide advanced networking, optical links, and other hardware to make OpenAI’s data centers run faster and smoother. The first systems are planned for 2026, with a wider rollout by 2029. The news comes a few days after Sam Altman said that tech giants should rely on TSMC to expand chip capacity, according to analysis.
In comparison to the competition, companies like Google, Amazon, and Meta are already designing their own custom chips, but OpenAI’s approach will be different. Instead of building everything from scratch, it is working with an experienced partner to save time and reduce costs. This lets OpenAI keep pace with innovations in hardware, experts note, while focusing on its core AI development. The partnership also aligns with broader trends in the industry, according to analysis, as companies seek to optimize their AI infrastructure for future demands, including potential applications in retail where experts note similar collaborations are emerging to enhance user experiences.
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