The news: OpenAI, which is transitioning away from its nonprofit roots, partnered with Broadcom to build its first bespoke AI hardware to power its servers, per Reuters.

The startup’s custom AI training chip will be built through Taiwan Semiconductor Manufacturing Company (TSMC) foundries. While waiting for its own hardware plans to solidify, it will use AMD’s AI hardware alongside existing Nvidia servers.

With Nvidia owning 95% of the market for AI server hardware, OpenAI’s goal of building its own AI chips will help it manage future costs and ensure access to AI servers. Meta and Google are similarly investing heavily on developing AI hardware.