According to a report by the Financial Times and Wall Street Journal, Openai has invested $10 billion in a contract with US semiconductor company Broadcom to develop its own artificial intelligence chip.
The partnership aims to reduce Openai's reliance on NVIDIA, which currently controls the AI industry. New custom chips are expected to be available from next year, and Openai will use them internally to train and run models such as ChatGpt along with other AI products.
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Broadcom had hinted at a major new deal last week, but details only came out later. The deal represents a major boost for the California-based chipmaker, and Openai offers one of its biggest customers.
Nvidia has previously been a leading supplier of high-performance processors for cloud providers such as Amazon Web Services, Google, Microsoft, and Oracle. Oracle recently announced plans to purchase more than $40 billion in NVIDIA chips to bolster new data centers related to the so-called “Stargate Project,” an initiative by AI companies to expand its computing infrastructure.
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Openai's in-house chip ambition hints surfaced earlier this year as key players were under pressure to ensure more processing power. Google, Amazon and Microsoft are developing their own AI chips to diversify away from Nvidia.
Nvidia remains in high demand, nonetheless. The company reported last week that its quarterly sales rose 56%, highlighting the strength of the market. Meanwhile, the report suggests that the Trump administration may ease some trade restrictions and reopen major international markets with Nvidia's latest chip.
