GameStop Misses Q3 Revenue Estimates as Digital Shift Pressures Growth 
SpaceX Reportedly Preparing Record-Breaking IPO Targeting $1.5 Trillion Valuation 
SoftBank Shares Slide as Oracle’s AI Spending Plans Fuel Market Jitters 
CVS Health Signals Strong 2026 Profit Outlook Amid Turnaround Progress 
Australia Enforces World-First Social Media Age Limit as Global Regulation Looms 
SK Hynix Considers U.S. ADR Listing to Boost Shareholder Value Amid Rising AI Chip Demand 
Nvidia Develops New Location-Verification Technology for AI Chips 
EU Court Cuts Intel Antitrust Fine to €237 Million Amid Long-Running AMD Dispute 
US Charges Two Men in Alleged Nvidia Chip Smuggling Scheme to China 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
Moore Threads Stock Slides After Risk Warning Despite 600% Surge Since IPO 
Microsoft Unveils Massive Global AI Investments, Prioritizing India’s Rapidly Growing Digital Market 
SoftBank Eyes Switch Inc as It Pushes Deeper Into AI Data Center Expansion 
Gulf Sovereign Funds Unite in Paramount–Skydance Bid for Warner Bros Discovery 
Intel’s Testing of China-Linked Chipmaking Tools Raises U.S. National Security Concerns 
Evercore Reaffirms Alphabet’s Search Dominance as AI Competition Intensifies 
EssilorLuxottica Bets on AI-Powered Smart Glasses as Competition Intensifies 
In a strategic move to enhance AI performance, OpenAI is working with TSMC and incorporating AMD chips into its infrastructure to develop custom silicon. Expected to start production by 2026, this effort could reshape the competitive landscape of AI hardware.
Custom Silicon Partnership with Broadcom and TSMC
According to insiders who spoke with Reuters, OpenAI is allegedly collaborating with Broadcom to create new bespoke silicon that can handle its massive AI inference workloads. The company has also reportedly secured production capacity with TSMC.
Reportedly, OpenAI has assembled a chip development team consisting of approximately twenty individuals, among them are lead engineers who had previously worked on Google's Tensor processors for artificial intelligence.
Nevertheless, according to The Verge, according to the current schedule, the production of the custom-designed hardware might not begin until 2026.
AMD Chips Bolster OpenAI’s Interim Setup
Moreover, OpenAI is reportedly using AMD processors in its Microsoft Azure environment, according to the sources. In a move to catch up to Nvidia, the market leader, AMD has seen its data center business quadruple in the past year, with the introduction of its MI300 chips being a major factor in this development.
In July, The Information reported that OpenAI was in talks with Broadcom and other semiconductor designers regarding the development of an AI chip.
Initial Foundry Plans Shelved Amid High Costs
Earlier this year, Bloomberg said that OpenAI was planning to establish its own network of foundries, but Reuters claims that these plans have been shelved owing to time and money constraints.
Based on the information provided, OpenAI is following the same path as other IT businesses that are attempting to control expenses and gain access to AI server hardware through the use of specially designed chips.
Competing with Industry Giants in AI Hardware
However, OpenAI might require a lot more money to catch up to Google, Microsoft, and Amazon, which are all several generations behind in their endeavors.
