Nvidia shares edged lower in early Monday trading following a report that suggested OpenAI, the Microsoft-backed creator of ChaptGPT, is looking to design its own AI-powering chips as it plans its next phase of expansion.

OpenAI is closing in on the final design for its first in-house AI chip that will be used as negotiating leverage against other chip suppliers.

OpenAI is finalizing its first in-house AI chip design, aiming to reduce reliance on Nvidia. The chip, set for TSMC fabrication, will undergo a six-month ’tape out’ process. If successful, mass production could start by 2026,