OpenAI is pushing ahead on its plan to reduce its reliance on Nvidia for its chip supply by developing its first generation of in-house AI silicon. From a report: The ChatGPT maker is finalizing the design for its first in-house chip in the next few months and plans to send it for fabrication at Taiwan Semiconductor Manufacturing Co, sources told Reuters. The process of sending a first design through a chip factory is called "taping out."

The update shows that OpenAI is on track to meet its ambitious goal of mass production at TSMC in 2026. A typical tape-out costs tens of millions of dollars and will take roughly six months to produce a finished chip, unless OpenAI pays substantially more for expedited manufacturing. There is no guarantee the silicon will function on the first tape out and a failure would require the company to diagnose the problem and repeat the tape-out step. Inside OpenAI, the training-focused chip is viewed as a strategic tool to strengthen OpenAI's negotiating leverage with other chip suppliers, the sources said.

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