OpenAI says that designing your own chips allows you to “embed the knowledge gained from developing pioneering models and products into hardware, unlocking new levels of capabilities and intelligence.”
Broadcom is expected to begin rolling out hardware racks in the second half of 2026, and the transaction is expected to close by the end of 2029, the announcement said. OpenAI co-founder and CEO Sam Altman said the partnership “is a critical step in building the infrastructure needed to unlock the potential of AI and deliver real benefits to people and businesses.”
Creating custom chips is part of a growing movement in the tech industry as major players such as Meta, Google and Microsoft work to shore up key supply lines amid rising demand and reduce their reliance on Nvidia’s AI chips. So far, custom chip designs haven’t posed a real threat to the chipmaking giant, although they have brought significant benefits to other chipmakers like Broadcom.