OpenAI is in talks with a chip maker that is bigger than AMD and Intel combined

OpenAI is in talks with a chip maker that is likely planning on creating AI hardware solutions that will eventually rival NVIDIA's offerings.

OpenAI is in talks with a chip maker that is bigger than AMD and Intel combined
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Junior Editor
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NVIDIA is the company powering the tech industry's massive push into artificial intelligence-powered systems, as the green team is making the incredible hardware that makes it possible for these impressive tools and features to exist.

OpenAI is in talks with a chip maker that is bigger than AMD and Intel combined 6556165

NVIDIA's dominance in this market was achieved by providing the best hardware for training AI systems, which briefly made the green team the most valuable company on the planet, taking the crown of long-standing tech giants such as Amazon and Microsoft. NVIDIA has since moved down to third place but remains the dependent player in the world of AI-focused microprocessors. With the push into AI many developers want to continue training their creations but don't necessarily want to rely on or keep fueling the massive beast that is NVIDIA.

A new report from The Information provides an example: Microsoft and OpenAI are in talks with several chip designs to create a new AI chip to rival NVIDIA. One of those companies was Broadcom, which is ranked the 13th most valuable company in the world for its solutions in semiconductors and software infrastructure.

While it may not be a household name much like NVIDIA is now, Broadcom has its products across various industries such as home connectivity, networking, data centers, smartphones and telecommunications.

To illustrate the size of Broadcom, the company has a market cap or net worth of $705.8 billion, while Intel and AMD have $133.46 and $226.7 billion, respectively. While Broadcom certainly has more money than Intel and AMD combined, they aren't close to NVIDIA's market cap of $2.78 trillion.

Additionally, if a deal is struck between Broadcom, OpenAI, Microsoft, and others, it will be unlikely the company will be able to release an AI processor that rivals NVIDIA's products simply because of the amount of time NVIDIA has had with its growing AI platform.

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Junior Editor

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Jak joined the TweakTown team in 2017 and has since reviewed 100s of new tech products and kept us informed daily on the latest science, space, and artificial intelligence news. Jak's love for science, space, and technology, and, more specifically, PC gaming, began at 10 years old. It was the day his dad showed him how to play Age of Empires on an old Compaq PC. Ever since that day, Jak fell in love with games and the progression of the technology industry in all its forms.

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