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.

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.

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.

Making a high-performance processor in-house will be a bargaining chip as the AI giant buys from NVIDIA, Reuters said.

Microsoft-backed OpenAI (MSFT), the maker of ChatGPT, is looking to reduce its reliance on chipmaker Nvidia (NVDA) by developing its first