OpenAI is set to produce its own AI chip for the first time next year in partnership with American semiconductor company Broadcom, according to the Financial Times on Thursday.

The newspaper quoted sources saying OpenAI intends to use the chip internally rather than making it available to external customers.

Last year, Reuters reported that OpenAI was collaborating with Broadcom and Taiwan Semiconductor Manufacturing Company (TSMC) to develop its first in-house chip to run its AI systems, integrating chips from AMD and Nvidia to meet the growing demand for infrastructure.

At that time, OpenAI was exploring options to diversify chip sources and reduce costs.

Reuters reported in February that OpenAI aims to reduce its reliance on Nvidia for chip supplies by developing its first generation of AI chips.

Broadcom CEO Hock Tan said on Thursday the company expects significant growth in AI revenue for fiscal year 2026 after securing orders exceeding $10 billion for AI infrastructure from a new, unnamed customer.

OpenAI’s move follows efforts by Google, Amazon, and Meta, which have developed custom chips to handle AI workloads amid rising demand for technology capabilities to train and run AI models.