Unnamed sources tell the outlet that OpenAI designed the chip with US semiconductor giant Broadcom, which announced a $10 billion chip order from an unnamed customer on Thursday. Industry analysts widely believe that new client is OpenAI, a partnership that has been something of an open secret for months.

OpenAI will deploy the custom chips internally, rather than sell them to external customers, the report says. The move mirrors the approach of other tech giants like Google and Amazon, which have designed custom chips to cut costs, shore up supply and reduce their dependence on chipmaking giant Nvidia. Tech titans like OpenAI have been pumping billions into bolstering AI infrastructure and securing chips to run their data-hungry AI models.

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