OpenAI to Challenge Nvidia with Custom AI Training Chip in 2025

According to reports, OpenAI is set to launch its own AI training chip, potentially in Q4 2025. The ASIC, being developed with Broadcom and manufactured by TSMC, is designed to maximize the efficiency of AI model training. This move is seen as a strategic effort to minimize the costs associated with relying on third-party hardware, such as Nvidia GPUs. The project, spearheaded by CEO Sam Altman, has gained momentum since 2023. While the initial deployment may be limited to OpenAI’s internal infrastructure, the chip’s release could disrupt the current market dominated by Nvidia and potentially offer superior performance in certain AI workloads.