OpenAI, the company behind ChatGPT, is set to mass produce its own artificial intelligence chips from next year in a landmark deal with Broadcom. The $10 billion partnership marks a major step for the San Francisco-based firm as it seeks to reduce reliance on Nvidia and secure the vast computing power needed for its next generation of AI models.

The chip, co-designed with US semiconductor giant Broadcom, will be tailored specifically for OpenAI’s internal use, powering the training and deployment of systems such as GPT-5, according to a report in the Financial Times. Unlike Nvidia’s widely available processors, these custom chips are not expected to be sold on the open market, underscoring how OpenAI is prioritising compute capacity to meet soaring demand.

The move places OpenAI alongside other tech giants like Google, Amazon and Meta, which have all developed their own specialised chips to run AI workloads. With AI adoption accelerating globally, control over hardware is increasingly viewed as essential to scaling products and services.

Broadcom’s chief executive Hock Tan hinted at the deal during an earnings call on Thursday, pointing to a “mystery new customer” committing to $10 billion in orders. People familiar with the matter confirmed that customer is OpenAI. Tan said the agreement would bring “immediate and fairly substantial demand,” with shipments starting in 2026.

The partnership could have big implications for the AI hardware market, long dominated by Nvidia. While Nvidia remains the industry leader, analysts have noted that Broadcom’s custom chip division could grow faster than Nvidia’s core business by 2026. Broadcom shares jumped nearly 9% in pre-market trading on Friday, adding to gains of more than 30% this year.

OpenAI chief executive Sam Altman has been open about the need for more computing power, describing it as the company’s biggest bottleneck. Last month, he said OpenAI was doubling its compute fleet over the next five months to support the rollout of GPT-5 and other products. The deal with Broadcom gives the company a clearer path to securing that capacity in the long term.

For OpenAI, this is about more than just chips — it is about controlling the infrastructure that underpins the global AI race. With demand from businesses and consumers only growing, the battle for dominance is moving deeper into the hardware layer of the industry.