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OpenAI is working with Broadcom and TSMC to build the first “in-house” chips to support its AI systems. The report mentions that OpenAI has looked at a range of options to diversify its chip supply and reduce costs.

The company also plans to use AMD chips alongside NVIDIA chips to meet its surging computing power needs, the sources said. Earlier, OpenAI had even considered setting up a chip foundry. But according to the source, OpenAI has abandoned its foundry plans in light of cost and time considerations. As an alternative, the company plans to focus on in-house chip design work.

OpenAI has assembled a chip team of about 20 people led by top engineers who have built tensor processing units (TPUs) at Google, including Thomas Norrie and Richard Ho, according to the report.The sources said OpenAI has identified manufacturing capabilities with TSMC through Broadcom and plans to build its first custom chip in 2026.

But the timeline is subject to change, they added. OpenAI is still determining whether to develop or acquire other elements of chip design and may bring in additional partners, two of the sources said.