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OpenAI Reportedly Developing Proprietary AI Chipsets, Said to Be Manufactured by TSMC

OpenAI is reportedly developing its first in-house chips using TSMC’s A16 Angstrom nodes.

OpenAI Reportedly Developing Proprietary AI Chipsets, Said to Be Manufactured by TSMC

Photo Credit: Pexels/Solen Feyissa

TSMC’s A16 Angstrom fabrication process is believed to undergo manufacturing in 2026

Highlights
  • OpenAI will reportedly use the AI chipsets to power Sora
  • Sora is an under-development AI video generator
  • OpenAI could add Sora’s features to the iPhone in the future
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OpenAI is reportedly developing a proprietary artificial intelligence (AI) chipset, which will be manufactured by chipmaker Taiwan Semiconductor Manufacturing Company Limited (TSMC). As per a report, the AI firm is looking to build a custom chipset based on the A16 Angstrom process which is yet to hit mass manufacturing. Interestingly, Apple is said to have also placed orders for the same chipsets, likely to be used in future iPhone models. This synergy is said to be more than a coincidence and it is believed that both companies are working together for future AI features, including Sora.

OpenAI In-House AI Chipsets

According to a Money.udn report, OpenAI has asked TSMC to produce A16 Angstrom chipsets. Citing sources familiar with the matter, the publication claimed that the AI firm is looking to develop in-house AI chipsets. While the fabrication process will be given by the Taiwan-based chipmaker, OpenAI will customise it to fit its AI systems.

The report also claimed that the ChatGPT maker is looking to develop proprietary chipsets to power resource-intensive AI systems such as Sora, the generative video model. Notably, Sora is still under development and the company has not revealed when it might be available to the public.

However, Apple is also said to have asked TSMC to produce the A16 Angstrom chipset for its future iPhone models. While the move is not a new one for the Cupertino-based tech giant, the reason OpenAI has also opted for the same chipset fabrication process is said to be because the two companies plan to collaborate on future AI projects.

A Wccftech report claims that OpenAI might be planning to eventually integrate Sora's features with the iPhone. As such, using the same chipset is said to allow for better optimisation of the feature and easier deployment. Apple is reportedly interested in this partnership as the AI features might boost the sales of iPhone devices.

Separately, another report claims that Apple and Nvidia are interested in investing in OpenAI as a part of a new fundraiser. The rumoured funding round is said to take the AI firm's market valuation above $100 billion (roughly 7,870 crores).

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Akash Dutta
Akash Dutta is a Senior Sub Editor at Gadgets 360. He is particularly interested in the social impact of technological developments and loves reading about emerging fields such as AI, metaverse, and fediverse. In his free time, he can be seen supporting his favourite football club - Chelsea, watching movies and anime, and sharing passionate opinions on food. More
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