OpenAI developing 'Titan' AI chip with Broadcom, targets 2026

What happened: OpenAI is designing a custom AI accelerator, reported as “Titan,” with Broadcom. The companies plan rack deployments beginning in the second half of 2026. They also plan mass production starting in H2 2026. OpenAI announced a multi‑year collaboration to develop 10 gigawatts of custom accelerators and networking systems. Bloomberg and Reuters report the chips will be used internally first. (sources: 1, 2, 3)

Technical details: OpenAI will design the chips. Broadcom will build and deploy the systems. The firms target deployments starting in H2 2026 and aim to reach 10 GW by 2029. Supply‑chain reporting says the first generation may use TSMC N3 process nodes. A later generation may use a more advanced node; those node claims are single‑source. (sources: 1, 3, 4)

Implications: Custom accelerators aim to improve inference economics and cut reliance on external GPU suppliers. If timelines hold, internal ASICs could change OpenAI's infrastructure costs and vendor mix between 2026 and 2029. (sources: 2, 3, 5)

Why It Matters

• Prepare for heterogeneous clusters: expect mixed fleets (GPUs + custom accelerators) and update procurement and deployment plans for inference workloads.
• Validate early: model‑ops teams should benchmark models on Broadcom‑built accelerators as internal rollout will limit external access initially.
• Monitor capacity impact: track OpenAI’s 10 GW target (starting H2 2026) — it may tighten demand for advanced‑node fab capacity and high‑performance networking equipment.
• Review security and supply chain: firmware, trust, and patching processes must adapt for custom ASICs and new foundry partners (TSMC).