OpenAI working on in-house AI chip, scales back foundry ambitions, Reuters says

Microsoft-backed (MSFT) OpenAI is working with Broadcom (AVGO) and TSMC (TSM) to build its first in-house artificial intelligence chip, while adding AMD (AMD) chips alongside Nvidia (NVDA) chips to meet its surging infrastructure demands, sources told Reuters’ Krystal Hu, Fanny Potkin and Stephen Nellis. OpenAI has examined a range of options to diversify chip supply and reduce costs and has considered building everything in-house and raising capital for an expensive plan to build a network of factories known as “foundries” for chip manufacturing, but the company has dropped the ambitious foundry plans for now due to the costs and time needed to build a network, according to sources. The company now plans instead to focus on in-house chip design efforts, the report added. Investors in OpenAI include Microsoft, Thrive Capital, Khosla Ventures, Fidelity Management, Nvidia (NVDA), and SoftBank (SFTBY), the company noted at the time of its most-recent funding announcement.