OpenAI is in discussions with Broadcom Inc. (NASDAQ:AVGO) to co-develop a new AI chip. This move is aimed at reducing the company’s dependency on Nvidia Corp. (NASDAQ:NVDA) and strengthening its supply chain.
What Happened: OpenAI, co-founded and led by Sam Altman, is in talks with Broadcom and other semiconductor designers to enhance the supply of components and infrastructure required for running advanced AI models, reported the Financial Times on Thursday.
These discussions are part of Altman’s strategy to secure the necessary resources for the company’s AI models. "The limiting factor of AI is capacity: chip capacity, energy capacity, compute capacity. [OpenAI] is not just going to sit back and let others build [that] when they are on the front line," said a person with knowledge of OpenAI's plans, according to the report.
Altman has worked with chipmakers, partners like Microsoft Corp. (NASDAQ:MSFT), government agencies, and financial backers to increase capacity and maintain his ...