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Samsung and OpenAI Meeting Ends in Disappointment

Samsung Chairman Lee Jae-Yong recently met with OpenAI CEO Sam Altman to propose potential AI partnerships, but the outcome was not favorable.

Negotiations for AI Integration

The Korean tech brand was planning to incorporate third-party AI solutions, such as ChatGPT, into its business operations. Lee met with OpenAI CEO Sam Altman to discuss potential collaborations, but was unsuccessful in securing OpenAI’s business for Samsung’s foundry services.

OpenAI Partnerships with TSMC

According to a report, OpenAI plans to have its custom AI chipsets manufactured by Taiwan Semiconductor Manufacturing Company (TSMC). OpenAI is developing dedicated AI chips and is on track to finalize the design for its first-generation custom chipset in the coming days.

Mass Production Plans

The aim behind starting mass production in 2026, with TSMC handling the manufacturing, is also expected to produce the chip based on its most advanced 3nm process. "Taping out" refers to the process of sending an initial design to a chip factory for production. A report from Reuters revealed that a typical tape-out costs tens of millions of dollars and takes approximately six months to complete.

Manufacturing Deadline and Risks

Unless OpenAI pays a premium to make manufacturing easier, it must send the initial design to TSMC within the first half of this year to start mass production early next year. Even if TSMC accepts OpenAI’s chip design, there’s a risk it might fail production tests, necessitating a re-read.

Future Plans and Competition

OpenAI is looking forward to introducing even more powerful processors in the future. Samsung is expecting to win OpenAI as a client for its foundry business, but its failure to produce high-yield 3nm and 2nm chips likely led OpenAI to choose the more reliable TSMC. However, it will be interesting to see how the company will stand strong against TSMC to compete.

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