OpenAI says its next-generation processors could be made at Samsung — double-sourcing with TSMC hints at massive volume requirements

OpenAI is expanding its relationship with Samsung beyond memory supply and enterprise software as the AI giant plans to outsource production of at least some of its processors to Samsung Foundry, Harrison Kim, General Manager of OpenAI Korea, revealed this week. If the information is accurate, then OpenAI will source its AI accelerators from both TSMC and Samsung Foundry, which suggests massive volume requirements.

“One of the areas where we have made the most progress and gained the most recognition with Samsung Electronics is our joint production and ​research on the next-generation chips we are developing,” said Harrison Kim, General Manager of OpenAI Korea, at ​a press conference in Seoul, Reuters reports.

OpenAI already has its own AI ASIC program that relies on Broadcom’s design services as well as TSMC’s wafer processing and advanced packaging services. So far, the company has introduced its first inference AI accelerator called Jalapeño that was defined by the company’s engineers, then co-designed with Broadcom, then made by TSMC, all in less than 18 months.

OpenAI did not explain whether Samsung’s participation concerns a second production source for Jalapeño, another processor under development by OpenAI, a chip jointly developed by Samsung and OpenAI, or some other aspect of chip production and development. Samsung and SK hynix already supply memory for OpenAI’s Stargate data center initiative, though joint chip development and production barely have a relation to DRAM supply.

OpenAI’s 1^st Generation Jalapeño will unlikely be double-sourced from TSMC and Samsung because the chip is already in mass production at TSMC and OpenAI is talking about ‘next-generation chips,’ not the ones that are in mass production at the moment. Furthermore, development of Jalapeño’s successor is well underway and is approaching tapeout, which means that its mass production is not far away either. Since OpenAI’s claim clearly involves ‘next-generation chips,’ it is entirely possible that OpenAI will indeed produce its 2^nd Generation inference ASIC at Samsung Foundry.

Back in late July, Samsung Electronics and Broadcom announced a strategic partnership valued at over $200 billion through 2030 to collaborate on advanced foundry, memory, and packaging technologies for AI infrastructure. Hence, as OpenAI has an agreement with Broadcom to procure 10GW of custom AI accelerators, it will be able to produce these accelerators at both Samsung and TSMC. Of course, if it needs silicon produced at Samsung, and pays Broadcom for appropriate design porting.

Perhaps, OpenAI will take a page from Tesla’s book and will double-source Jalapeño’s successor from TSMC and Samsung to get higher volumes. However, Tesla’s volume requirements may be different from those of OpenAI.

Tesla needs extraordinary AI5 volumes because it intends to use the processor across three very different high-volume applications: AI data centers, vehicles, and Optimus robots. Therefore, Tesla could potentially need millions of AI5 chips for cars alone, on top of robots and data-center deployments. Therefore, paying for separate TSMC and Samsung physical implementations gives Tesla not only supply-chain resilience but also aggregate capacity necessary to supply several product categories.

Yet, data center accelerators tend to be vastly more silicon-intensive per unit compared to ASICs for vehicles or robots. If OpenAI/Broadcom’s next ASIC is a large leading-edge processor with multiple dies and OpenAI wants gigawatts of these processors, wafer requirements could still become too high for TSMC alone (which is fully booked by the likes of AMD and Nvidia). In that situation, OpenAI may need another foundry to get enough ASICs. Still, we are speculating.