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FAME Delivered > Blog > Business > OpenAI Plans to Build In-House AI Chip by 2026
BusinessTechnology

OpenAI Plans to Build In-House AI Chip by 2026

Staff Editor
Staff Editor Published October 30, 2024
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OpenAI reportedly planning to build its first AI chip in 2026
Image Credits: Justin Sullivan / Getty Images
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OpenAI Moving Towards In-House AI Chips

OpenAI is reportedly working on developing its own AI chip, which could be ready by 2026, according to Reuters. Collaborating with chipmakers TSMC and Broadcom, OpenAI aims to design an AI chip in-house, potentially reducing dependency on external suppliers. This shift comes as OpenAI moves away from plans to establish its own chip manufacturing plants, instead focusing on custom chip design with external production partners.

Contents
OpenAI Moving Towards In-House AI ChipsExpanding Beyond Nvidia: AMD Chips Enter the MixBroader Implications

Expanding Beyond Nvidia: AMD Chips Enter the Mix

Previously, OpenAI relied heavily on Nvidia GPUs for model training. However, with global chip shortages and increased training costs, the company is now integrating AMD chips through Microsoft’s Azure cloud platform as an alternative. This shift aims to mitigate supply chain issues and cut costs while enabling greater flexibility in AI model development.

Broader Implications

If successful, OpenAI’s in-house AI chip could streamline its operations and offer a competitive edge, potentially setting a trend for other AI-focused companies. This strategy aligns with recent moves by major tech players like Google and Amazon, which have also developed custom chips to power their AI-driven services.

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