OpenAI is working with Broadcom and TSMC to develop its first in-house AI chip optimized for inference, while also expanding its use of AMD GPUs alongside NVIDIA chips to meet growing infrastructure needs, according to sources cited by Reuters journalist Krystal Hu. The company considered building its own chip foundries but decided to focus on chip design instead due to high costs and long timelines. OpenAI’s chip strategy involves diversifying suppliers, managing expenses, and leveraging industry partnerships. The company has faced chip shortages and rising costs as one of the largest buyers of NVIDIA GPUs.