Microsoft is incorporating OpenAI's custom chip designs into its semiconductor strategy as part of an expanded partnership. CEO Satya Nadella announced that Microsoft will utilize OpenAI's chip and hardware research until 2030, with access to AI models through 2032. This collaboration aims to enhance Microsoft's in-house silicon strategy by aligning chip architecture, software, and cloud infrastructure for a unified AI platform. OpenAI is co-developing specialized AI processors and networking hardware with Broadcom, which Microsoft plans to industrialize and evolve under its own IP for Azure and AI services. This strategy is designed to reduce reliance on third-party suppliers, improve training throughput and inference efficiency, and boost competitiveness against Google and Amazon.