ChatGPT developer OpenAI is close to producing a new microchip with Taiwan Semiconductor Manufacturing Co (ADR) (NYSE:TSM) to circumvent Nvidia Corp (NASDAQ:NVDA, ETR:NVD).
Last October the AI company, in which Microsoft Corp (NASDAQ:MSFT) is a major investor, was revealed to be working with Broadcom and TSMC to build its first in-house chip to train its AI models.
Today, Reuters reported that OpenAI is "finalizing the design" for the chip in the next few months for the 'taping out' process with TSMC for intended mass production in 2026, if the process goes to plan.
The report suggested that the chip is a strategic tool to strengthen the company's hand in negotiations with other chip suppliers.
Shares in TSMC were down 1.8% earlier in Taipei after the company warned that first-quarter revenue would be at the lower end of its previous guidance due to a $161 million hit from a January earthquake in the country.
The world’s largest contract chipmaker, which is a supplier to Nvidia and many others, said the quake led to wafer losses but did not cause structural damage to its factories.