OpenAI builds first chip with Broadcom and TSMC, scales back foundry ambition

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Oct 29 (Reuters) - OpenAI is working with Broadcom (AVGO.O), opens new tab and TSMC (2330.TW), opens new tab to build its first in-house chip designed to support its artificial intelligence systems, while adding AMD (AMD.O), opens new tab chips alongside Nvidia (NVDA.O)

, opens new tab chips to meet its surging infrastructure demands, sources told Reuters.

OpenAI, the fast-growing company behind ChatGPT, has examined a range of options to diversify chip supply and reduce costs. OpenAI considered building everything in-house and raising capital for an expensive plan to build a network of factories known as "foundries" for chip manufacturing.

The company has 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, according to sources, who requested anonymity as they were not authorized to discuss private matters.

The company's strategy, detailed here for the first time, highlights how the Silicon Valley startup is leveraging industry partnerships and a mix of internal and external approaches to secure chip supply and manage costs like larger rivals Amazon, Meta, Google and Microsoft. As one of the largest buyers of chips, OpenAI's decision to source from a diverse array of chipmakers while developing its customized chip could have broader tech sector implications.

 

 

https://www.reuters.com/technology/artificial-intelligence/openai-builds-first-chip-with-broadcom-tsmc-scales-back-foundry-ambition-2024-10-29/