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OpenAI wants in-house AI chip to power its platform and the upcoming hardware devices that will need more resources.
OpenAI is using Broadcom’s help to make its in-house chip
OpenAI knows it needs to expand its resources to keep the AI tools running and its new deal with Broadcom is primed to give us the first in-house AI processor from the company. Broadcom is going to lead the hardware design part of the deal, while OpenAI focuses on getting the best out of the hardware for its own AI ecosystem that will have ChatGPT at the forefront.
Both the companies are clear about the use of the AI chip and OpenAI will ensure that the design specifications match its needs. These new AI processors will not be built for the long haul and they will be deployed by the company in the second half of 2026.
Custom AI Chip The Best Way Forward
OpenAI has already signed up with Nvidia for a much bigger outlay that includes the option of getting a stake in the GPU tech giant. But these custom chips are in hot demand, which explains the recent share value jump for Broadcom after the OpenAI deal was announced.
The company is also invested in making hardware devices, for which it has paid billions to buy Jony Ive and his startup. The AI device is going to launch in the next few years but both Sam Altman and Ive are battling over the identity and the design of the device.
OpenAI has entered the AI agent business with the new AgentKit that was announced by CEO Sam Altman at the company’s DevDay event. ChatGPT might be its bread and butter in the market but AI agents are really becoming a core part of the changing workflows and OpenAI wants to help developers build their own agents that fit their purpose and use case.
AgentKit sounds very much like something Apple would announce, except, the company is yet to truly embrace AI let alone AI agents. ChatGPT caters to both users and businesses in different ways but the company needs developers who will make the future more AI-centric for its business aspirations.
S Aadeetya, Special Correspondent at News18 Tech, accidentally got into journalism 10 years ago, and since then, has been part of established media houses covering the latest trends in technology and helping fr…Read More
S Aadeetya, Special Correspondent at News18 Tech, accidentally got into journalism 10 years ago, and since then, has been part of established media houses covering the latest trends in technology and helping fr… Read More
California, USA
October 14, 2025, 15:50 IST
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