OpenAI is preparing to roll out its first of its own artificial intelligence chip in 2026 through a partnership with U.S. semiconductor leader Broadcom. Broadcom executives confirmed a new $10 billion order from an unnamed customer, which people familiar with the matter identified. The deal has already boosted Broadcom’s market outlook and sent its shares higher.
OpenAI Targets Independence from Nvidia
The company intends to deploy the custom chips internally rather than sell them to external buyers. previously reported that Sam Altman had been exploring ways to diversify its chip supply. In 2023, the company was said to be working with Broadcom and Taiwan Semiconductor Manufacturing Co. (TSMC) on an early design.
By February this year, OpenAI was close to finalising its first-generation silicon and preparing to send it to TSMC for fabrication.OpenAI’s move mirrors strategies by Google, Amazon, and Meta, all of which have built proprietary chips to support AI workloads.
Broadcom’s $10 Billion offer
Broadcom chief executive Hock Tan told analysts that a “new customer” had committed to more than $10 billion in AI infrastructure orders. While he did not name the client, people briefed on the matter confirmed it was OpenAI. Tan added that shipments for this customer would begin “pretty strongly” in 2026. The announcement sparked a 9.4 per cent jump in Broadcom’s share price on Friday, pushing its market capitalisation to $1.6 trillion.
The company has now secured four large customers for its custom AI chip business, with OpenAI joining three existing hyperscaler clients . Although Nvidia remains the dominant supplier of AI hardware, its growth has cooled compared with the early phase of the artificial intelligence boom.
Altman Pushes for More Compute Capacity
Sam Altman, OpenAI’s chief executive, said OpenAI was prioritising compute power for GPT-5 and aimed to double its compute fleet within five months. Industry watchers note that OpenAI was among Nvidia’s earliest and largest customers, but its appetite for hardware has far outpaced supply. Broadcom’s Tan had earlier hinted that several customers were working closely with the company on custom chip designs.
The OpenAI agreement now confirms that one of the most prominent players in generative AI is shifting toward vertical integration. As demand for artificial intelligence infrastructure shows no sign of slowing, competition in the custom silicon market is expected to intensify. With Broadcom and TSMC supporting OpenAI’s first-generation chip, the project underscores how chipmaking has become a central battleground for AI leadership.
