OpenAI to build its first AI chip with Broadcom and TSMC, scaling back its foundry ambitions

OpenAI is working with Broadcom and TSMC on building its first in-house chip designed to support its extensive AI systems.

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The news is coming directly from Reuters, which is reporting from its sources who "requested anonymity as they were not authorized to discuss private matters" (but I guess, did so with one of the largest publications in the world). OpenAI did consider building everything in-house, with CEO Sam Altman having ambitious plans to have a global network of dedicated chip fabrication plants, but that is now not happening.

Reuters reports that OpenAI "dropped the ambitious foundry plans for now due to the costs and time needed to build a network, and plans instead to focus on in-house chip design efforts".

OpenAI's new strategy seems to be using industry partnerships, with a mix of internal and external approaches to secure chip supply, and manage costs like larger companies in Amazon, Meta, Google, and Microsoft. OpenAI is one of the biggest buyers of chips, so its decision to diversify its chipmakers, while still continuing to work on its in-house customized chips, could have "broader tech sector implications" adds Reuters.