OpenAI’s secret weapon against Nvidia dependence takes shape
A large investment
The path to creating a custom AI chip requires substantial resources. Industry experts told Reuters that designing a single version of such a processor could cost as much as $500 million, with additional expenses for developing supporting software and hardware potentially doubling that amount.
The current OpenAI chip project, led by former Google chip designer Richard Ho, involves a team of 40 engineers working with Broadcom on the processor design, according to Reuters. The Taiwanese company TSMC, which also produces Nvidia’s chips, will manufacture OpenAI’s chips using its 3-nanometer process technology. The chips will reportedly incorporate high-bandwidth memory and networking features similar to those found in Nvidia’s processors.
Initially, OpenAI’s first chip will focus primarily on running AI models (often called “inference”) rather than training them, with limited deployment across the company. The timeline suggests mass production could begin at TSMC in 2026, though the first tape-out and manufacturing run faces technical risks that could require additional fixes and could delay the project for months.
OpenAI’s move into AI hardware comes as major tech companies spend record amounts on AI infrastructure. Microsoft plans to invest $80 billion in 2025, while Meta set aside $60 billion for the next year, Reuters notes. Last month, OpenAI (working with SoftBank, Oracle, and MGX) announced a new $500 billion “Stargate” infrastructure project aimed at building new AI data centers in the US.
