OpenAI is pushing ahead on its plan to reduce its reliance on Nvidia for its chip supply by developing its first generation of in-house artificial-intelligence silicon.

A new report suggests OpenAI is in the process of developing its first in-house AI chip, for early production with TSMC in 2025. The Latest Tech News, Delivered to Your Inbox

This custom chip is part of OpenAI’s strategy to strengthen its infrastructure and negotiating position with chip suppliers, namely NVIDIA, as rising costs and demand for AI hardware push companies to

OpenAI remains on track to start producing its in-house AI chip next year, according to a report from Reuters. Sources tell the outlet that OpenAI plans to finalize its design over the next few months before sending it to the Taiwan Semiconductor Manufacturing Co (TSMC) for fabrication.

TAIPEI (Taiwan News) — Industry sources said OpenAI plans to send its finalized chip design to TSMC in the coming months, Reuters reported Monday. Sources said this will be the ChatGPT creator’s first in-house chip, marking a move away from its reliance on Nvidia. The process of sending a final chip design to a fab is called “ taping out .”

OpenAI is progressing in its plan to develop custom AI chips to reduce the reliance on NVIDIA. According to a report, the company is preparing to finalise the design of its first in-house chip in the coming months and intends to send it for fabrication at TSMC (Taiwan Semiconductor Manufacturing Company).

OpenAI will tape-out its first chip on TSMC 3nm later this year, reports Reuters, with the intention of putting it into volume production in 2026. The chip will be used for both training and inference. It has been designed by an in-house team of 40 people led by Richard Ho. The team is working in collaboration with Broadcom.