OpenAI to move away from NVIDIA GPUs with new Broadcom partnership

OpenAI and Broadcom are collaborating on a new in-house AI chip to reduce their primary reliance on NVIDIA's expensive AI accelerators.

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Jak Connor

Tech and Science Editor

Published Sep 5, 2025 10:08 AM CDT

2-minute read time

TL;DR: OpenAI has partnered with Broadcom to develop custom AI accelerators, aiming to reduce reliance on costly NVIDIA GPUs for training future models. This strategic move seeks to lower expenses while maintaining AI performance, signaling a shift in the AI hardware market dominated by NVIDIA's expensive GPU solutions.

OpenAI has reportedly signed a deal with US semiconductor firm Broadcom in a long-term plan to reduce its reliance on NVIDIA GPUs.

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OpenAI, the creators of the famed AI chatbot ChatGPT, have reportedly entered into a partnership with Broadcom to make custom AI accelerators slated to go into use next year. The report comes from The Financial Times and Reuters, which states OpenAI is looking to move away from NVIDIA's expensive AI GPUs for training future models and wants to create their own custom chip to reduce expenditure.

NVIDIA has become the global wholesaler for AI GPUs, with the company's data center division generating $115.2 billion last year - more than AMD and Intel's entire company revenues combined. NVIDIA's dominance in the market has been a result of AI companies such as Meta, Microsoft, and OpenAI requiring more GPU horsepower to train more sophisticated AI models. However, the AI GPU prices are extremely expensive, and with more horsepower required it means larger investments.

OpenAI wants to reduce its expenditure in this department and it reportedly believes that Broadcom can help. Notably, Broadcom CEO, Hock Tan, recently stated the company secured a $10 billion AI systems order from a "new customer," presumably this is OpenAI.