OpenAI is pushing ahead on its plan to reduce its reliance on Nvidia for its chip supply by developing its first generation of in-house artificial-intelligence silicon.

While neither OpenAI and TSMC have commented on these reports, sources cited by Reuters have suggested that OpenAI’s AI chip, though capable of training and running models, will initially have a limited role. Rather its development by OpenAI is seen as being a strategic move to gain leverage over suppliers.

TAIPEI (Taiwan News) — Industry sources said OpenAI plans to send its finalized chip design to TSMC in the coming months, Reuters reported Monday. Sources said this will be the ChatGPT creator’s first in-house chip, marking a move away from its reliance on Nvidia. The process of sending a final chip design to a fab is called “ taping out .”