OpenAI is preparing to design and produce its own AI chip with help from Broadcom Inc in 2026, the Financial Times reported, citing unidentified people familiar with that tie-up.

The US artificial intelligence startup intends to ship the first chips next year, which would compete with accelerators from Nvidia Corp, the newspaper said.

OpenAI would start by using the chip internally, the FT reported.

READ MORE: OpenAI launches GPT-5 as the AI industry seeks a return on investment

Broadcom Chief Executive Officer Hock Tan told investors Thursday the company was working with prospective customers to develop AI accelerators — a market currently dominated by Nvidia.

“Last quarter, one of these prospects released production orders to Broadcom,” he said, without naming the customer. “We now expect the outlook for fiscal 2026 AI revenue to improve significantly from what we had indicated last quarter.”