Microsoft-backed (MSFT) OpenAI is in talks with Arm Holdings (ARM) about using an Arm-designed central processing unit with its artificial intelligence server chip, The Information reported Monday, citing three people with knowledge of the matter.
OpenAI is co-designing its AI chip in collaboration with Broadcom (AVGO), and Arm expects the startup to use its CPU alongside other AI chips from Nvidia (NVDA) and Advanced Micro Devices (AMD), the report said, citing one of the people.
Arm's CPU for OpenAI has the potential to generate billions of dollars in revenue for the company, one of the sources told The Information.
Neither OpenAI nor Arm immediately responded to MT Newswires' requests for comment.
Arm's stock was up 1.7% in recent Tuesday premarket activity.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)