OpenAI starts designing its own custom AI chips

PLUS: NVIDIA's desktop supercomputer lands at SpaceX and Google's $15B India bet

Author

Jelani Abdus-Salaam
October 14, 2025

In partnership with

Welcome back, AI’ers!

Here’s What’s On The Menu For Today

  • OpenAI begins designing custom AI chips

  • NVIDIA’s desktop supercomputer lands at SpaceX

  • Google’s $15B India AI hub investment

  • Walmart to allow shopping via ChatGPT

AI ON MY MIND

Happy Tuesday,

OpenAI is making a major move into hardware, partnering with Broadcom to design its own custom AI chips. The initiative marks a significant step toward vertical integration as the company aims to reduce its dependency on external suppliers like NVIDIA.

By taking control of its own silicon, OpenAI is aiming to build a full-stack AI ecosystem from the ground up. The big question is whether this vertical integration will provide the performance and cost advantages needed to outpace competitors in the race for next-generation AI.

By the way, I've been getting questions about how AI works in practice, so I'm launching a separate newsletter that dives deeper into real business applications and practical advice. [Click here if you're interested].

-Jelani Fuel (Co-founder of Best of AI)

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OpenAI's AI Chip Era Begins

The Recap: OpenAI announced a major partnership with Broadcom to co-develop its own custom AI chips. This move signals a strategic shift to vertically integrate its hardware and reduce reliance on third-party suppliers like Nvidia.

Unpacked:

  • The multi-year deal aims to deploy 10 gigawatts of custom AI accelerators, with the new hardware set to come online between late 2026 and the end of 2029.

  • In a fascinating twist, OpenAI used its own models to help design the chip, finding optimizations that would have taken human engineers an entire month to discover.

  • The collaboration focuses on building vertically integrated systems, giving OpenAI end-to-end control over everything from the silicon to networking and model performance.

Bottom line: This partnership signals OpenAI's ambition to become a full-stack AI company, controlling everything from custom silicon to model deployment. By designing its own hardware, the company can optimize for performance and cost, gaining a critical edge in the race for next-generation AI.

 NVIDIA’s Desktop Supercomputer Lands at SpaceX

The Recap:  NVIDIA launched the DGX Spark, a new desktop system packing a petaflop of AI performance, and CEO Jensen Huang personally delivered the first unit to Elon Musk at SpaceX. This compact powerhouse makes supercomputer-class AI accessible outside the data center.

Unpacked:

  • The system delivers one petaflop of AI performance and has 128GB of unified memory, allowing developers to run models with up to 200 billion parameters directly on their desktop.

  • The delivery echoes history, as Huang also hand-delivered the first DGX-1 system to Musk nine years ago for OpenAI, a machine that proved instrumental in developing ChatGPT.

  • The launch extends beyond SpaceX, with partners like Dell, HP, and Lenovo rolling out systems for labs and studios, happening as SpaceX prepares for the next test of its Starship launch vehicle.

Bottom line: NVIDIA is effectively shrinking the data center to fit on a desk, removing major barriers for developers and smaller teams to innovate. This move will likely accelerate the development of next-generation AI applications by putting immense computational power directly into the hands of creators.

MY FAVORITE AI TOOLS

Relevance is my favorite AI tool right now (even more so than N8N).

Here’s why:

It’s an AI agent building tool that doesn’t require you to build out the logic using nodes. Instead, you use natural language to build out these agents. But the best thing imo is that you can build AI Agent teams.

Like agents talking to each other completing a goal until its done. It’s nuts. No other tool on the market is doing this. You have to check it out.

(Try it out →Link)

👾 AI Tools We Use Everyday

➡️ N8N for AI Agents - Literally use this everyday to write this newsletter (link)

➡️ Axiom AI - AI Browser automation to scrape anything on the web (link)

➡️ GummySearch - AI Reddit research (link)

Tools are sourced from our database and are not sponsored or affiliated.

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MORE NEWS

Google's $15B India Bet

The Recap: Google is investing $15 billion to build a massive AI hub in Visakhapatnam, India, its largest infrastructure commitment to the country to date. The project features a gigawatt-scale data center and will be the company's largest AI hub outside of the United States.

Unpacked:

  • The new hub is designed as a full AI infrastructure solution, combining gigawatt-scale compute capacity with new international subsea cables to enhance India’s digital connectivity.

  • Google is partnering with local giants AdaniConneX and Bharti Airtel to build the data center campus and associated infrastructure, signaling a deep integration with India's industrial ecosystem.

  • This move positions Google alongside other major players like Amazon and OpenAI, who are also investing billions to establish India as an emerging global AI powerhouse.

Bottom line: This major investment underscores India's strategic shift from being a technology consumer to a critical center for global AI infrastructure. The new hub will provide developers and businesses in the region with unprecedented access to cutting-edge computing power, accelerating local innovation.

 Walmart Taps ChatGPT for Shopping

The Recap:  Walmart announced a new partnership with OpenAI, allowing customers to purchase items directly through the ChatGPT interface. The move aims to integrate conversational AI into the e-commerce experience of the nation's largest retailer.

Unpacked:

  • Walmart CEO Doug McMillon says the move is designed to evolve e-commerce from a simple search bar into a more personalized and contextual shopping experience.

  • The integration uses OpenAI's 'Instant Checkout' feature, which first launched with Etsy and plans to onboard over one million Shopify merchants soon.

  • This partnership positions Walmart to compete directly with Amazon's AI shopping assistant, Rufus, as both retail giants race to capture the AI-driven online commerce market.

Bottom line: The Sora 2 API puts professional-grade video creation tools into the hands of a much larger creative and technical community. Expect to see an explosion of new video-centric applications and content formats in the coming months.

OTHER NEWS YOU MAY LIKE

OpenAI expanded its Agent Builder capabilities, allowing connections to third-party servers for building powerful automations.

Zapier launched a new MCP Server that connects OpenAI's agents to its ecosystem of over 8,000 applications.

Google gained new automation capabilities, with users now able to create Google Forms directly through AI agents via Zapier's new integration.ONSOR US

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THAT’S IT FOR TODAY

Until next time, stay safe.

-Best of AI Team

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