[News] OpenAI Reportedly to Deploy Custom AI Chip on TSMC N3 by End-2026, Second-Gen Planned for A16

TSMC is set to hold its earnings call on the 15th, with demand for advanced process technologies in focus. According to Commercial Times, sources say OpenAI plans to launch a self-developed AI chip, codenamed “Titan,” by the end of 2026, using TSMC’s N3 process. The report adds that a second-generation version is reportedly planned on the more advanced A16 process.

As the report notes, OpenAI’s self-developed chip is expected to leverage ASIC design services from Broadcom. If the timeline holds, mass production is expected to begin in the second half of 2026, with development of the second-generation chip, Titan 2, also slated to start in the same period, the report says.

OpenAI has partnered with multiple chipmakers and currently relies on AI server systems from NVIDIA and AMD, while an ASIC approach would allow tighter customization for its own large language models. Looking ahead, the report indicates that ASICs and general-purpose GPUs are expected to coexist for OpenAI. Still, as the report points out, OpenAI may face challenges in securing sufficient manufacturing capacity. With Google, NVIDIA, and AMD already reserving a large share of TSMC’s capacity, OpenAI’s ASICs may struggle to reach the scale needed to deliver meaningful cost and efficiency gains.

OpenAI, Samsung Reportedly Collaborate on AI Earbuds

Meanwhile, OpenAI is also said to be working with Samsung on AI end device initiatives. According to the report, sources say OpenAI’s “Sweetpea” AI earbuds will adopt a 2nm chip, potentially from Samsung’s flagship Exynos lineup. To enable real time responses, the earbuds are expected to combine on device processing with cloud based models.

The report notes that OpenAI’s hardware strategy pairs wearables such as earbuds with subscription services, aiming to replicate or potentially surpass Apple’s ecosystem stickiness. However, the report adds that moving into hardware puts OpenAI in direct competition with established players such as Google and Apple, exposing it to significant competitive pressure.

Read more

• [News] OpenAI Reportedly Shifts First AI Hardware Order from China’s Luxshare to Foxconn
• [News] Foxconn Teams Up With OpenAI on AI Hardware; Output Hits 1,000 Server Racks a Week

(Photo credit: OpenAI)