OpenAI recruited a team of 40 engineers to develop the processor, recruiting former Google chip designer Richard Ho to head the endeavor. It is partnering with semiconductor manufacturer and designer Broadcom. The design is said to include high-bandwidth memory (HBM) and built-in networking capabilities.

This custom chip is part of OpenAI’s strategy to strengthen its infrastructure and negotiating position with chip suppliers, namely NVIDIA, as rising costs and demand for AI hardware push companies to

OpenAI remains on track to start producing its in-house AI chip next year, according to a report from Reuters. Sources tell the outlet that OpenAI plans to finalize its design over the next few months before sending it to the Taiwan Semiconductor Manufacturing Co (TSMC) for fabrication.