OpenAI Reportedly Picks TSMC Over Samsung for AI Chip Production

Samsung Chairman Lee Jae-Yong recently met with OpenAI CEO Sam Altman to propose potential AI partnerships, but that didn’t result in favor.
The Korean tech brand was planning to incorporate third-party AI solutions like ChatGPT into its business operations, for which Lee met with OpenAI CEO, but he was unsuccessful in securing OpenAI’s business for Samsung’s foundry services.
According to the report, OpenAI reportedly plans to have its custom AI chipsets manufactured by TSMC. OpenAI is gearing up to develop its dedicated AI chips, and it is already on track to finalize the design for its first-generation custom chipset in the coming days.
The aim behind starting mass production in 2026, with TSMC handling the manufacturing, is also expected to produce the chip based on its most advanced 3nm process. “Taping out” refers to the process of sending an initial design to a chip factory for production. A report from Reuters revealed that a typical tape-out costs tens of millions of dollars and takes approximately six months to complete.
Unless OpenAI pays a premium to make manufacturing easier, it must send the initial design to TSMC within the first half of this year to start mass production early next year. Even if TSMC accepts OpenAI’s chip design, there’s a risk it might fail production tests, necessitating a reading.
OpenAI is looking forward to introducing even more powerful processors in the future. Samsung is expecting to win OpenAI as a client for its foundry business, but its failure to produce high-yield 3nm and 2nm chips likely led OpenAI to choose the more reliable TSMC; however, it will be interesting to see how the company will stand strong against TSMC to compete.