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Investing.com-- OpenAI is preparing to begin manufacturing its own artificial intelligence chip from 2026 in partnership with Broadcom Inc (NASDAQ:AVGO), the Financial Times reported on Thursday, citing people familiar with the plans.
The move comes as OpenAI seeks to address rapidly increasing computing power requirements for its AI programs, while also reducing its reliance on Nvidia.
Broadcom CEO Hock Tan on Thursday said the company had a new, undisclosed customer committing to $10 billion in orders, with the FT report stating that this was OpenAI.
The ChatGPT maker plans to use the new chip internally, rather than supplying them to external customers, the FT report said. OpenAI had last year begun a collaboration with Broadcom over an AI chip, but the timeline for mass production had been unclear.
OpenAI’s strategy is in line with that of Wall Street’s so-called AI hyperscalers, with Google, Amazon, and Meta all designing their own specialized chips to run AI workloads.
Thursday’s FT report comes just hours after Broadcom clocked strong quarterly earnings and presented an upbeat outlook for the current quarter. Broadcom’s shares rose 4.5% in aftermarket trade.