OpenAI remains on track to start producing its in-house AI chip next year, according to a report from Reuters. Sources tell the outlet that OpenAI plans to finalize its design over the next few months before sending it to the Taiwan Semiconductor Manufacturing Co (TSMC) for fabrication.

According to sources referenced by Reuters, the company is apparently in the final months of finalizing the design for the in-house chip, with plans for the chip to be sent for fabrication at Taiwan Semiconductor Manufacturing Co. Ltd. this year. The same report claims that OpenAI is aiming to have the chip in mass production by 2026.

OpenAI is finalizing the design for its first custom AI training chip and is currently in the tape out phase, the final process before a semiconductor is manufactured. According to a report from Reuters, the chip will be fabricated by TSMC and made using the chipmaker’s 3nm technology.

OpenAI is reportedly working on its first in-house AU chip to lessen its reliance on Nvidia, which currently controls approximately 80% of the AI chip market.

OpenAI is reportedly developing its own AI silicon to reduce reliance on Nvidia, aiming to finalise its first chip design soon. The initiative could enhance negotiating leverage with suppliers and provide an alternative to Nvidia’s market dominance.

Powerful GPUs are the backbone of AI, and Nvidia is the main company supplying these chips. Companies’ dependence on the chips is the reason why Nvidia is one of the biggest tech companies in the world.