😎OpenAI Steps Into Chipmaking

PLUS: Alibaba’s Biggest AI Model

September 08, 2025

Reading time: 5 minutes

🗞️In this edition

  • Sponsored: PageAI – production-ready website & design from a simple prompt

  • OpenAI plans mass production of AI chips

  • Workflow Wednesday #35 ‘AI for Everyday Life’

  • Alibaba launches trillion-parameter AI model

  • In other AI news –

    • Anthropic to pay $1.5B in record author settlement

    • China cities launch AI bureaus to boost local economies

    • Nvidia warns GAIN AI Act could hurt competition

  • 4 must-try AI tools

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♨️News – OpenAI is preparing to begin large-scale production of its own artificial intelligence chips next year. The company is moving to reduce its reliance on Nvidia and strengthen its control over the hardware behind its AI models.

👨‍💻Fast facts –

  • OpenAI worked with US semiconductor company Broadcom to design the chip.

  • Broadcom recently announced a $10 billion chip order from an unnamed client, widely believed to be OpenAI.

  • The chips will be used internally rather than sold to other customers.

  • Google and Amazon have taken a similar route with their own custom chips.

  • The move comes as demand for powerful AI hardware continues to surge.

🤓OpenTools POV –  By developing custom chips, OpenAI is signaling it wants more control over its future growth. This step could help it manage costs and secure computing power at a time when access to advanced chips is becoming increasingly competitive.

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This Week in Workflow Wednesday #35: AI for Everyday Life

Workflow 1: Turn Chaos Into Clarity with NotebookLM
Drowning in notes, articles, and PDFs? Google’s free NotebookLM pulls them all together and gives you instant summaries, insights, and answers.

Step 1: Add Sources
Drop in your docs, links, or text. NotebookLM builds a guide so you can see the big picture without reading it all.


 Step 2: Ask Questions
Forget scanning pages, just ask:

  • “What’s the core argument?”

  • “Which file mentions deadlines?”

And here’s the kicker: NotebookLM goes beyond summaries to….We break it all down in this week’s issue, along with 2 other AI workflows.

Image Source: Google Images

☕News – Alibaba’s Qwen team has introduced its largest AI model so far, Qwen3-Max-Preview, which has more than 1 trillion parameters. The release marks a major step for the Chinese tech giant, showing it can compete closely with global leaders in large language models.

👨‍💻Fast facts –

  • Benchmarks show Qwen3-Max-Preview outperforming Alibaba’s previous models and ranking ahead of Claude Opus 4, Deepseek-V3.1, and others.

  • It supports a context window of 262,144 tokens and includes context caching for long and complex tasks.

  • The model is accessible through Qwen Chat, Alibaba Cloud API, OpenRouter, and Hugging Face’s AnyCoder tool.

  • Unlike earlier Qwen releases, this one is not open source, and access comes through paid APIs.

  • Early testers note stronger reasoning skills and faster responses than ChatGPT in some trials.

🤓OpenTools POV – Alibaba is betting big on scale with Qwen3-Max-Preview. The move shows that ultra-large models remain central to the AI race, even as many labs experiment with smaller, more efficient systems.

  • Anthropic to pay $1.5 billion to authors in landmark AI settlement // Lawyers said it’s believed to be the largest-ever settlement in a US copyright case, paying about $3,000 per book

  • China cities feed AI economies with dedicated services as race with US picks up pace // China’s first city-level AI bureau launches in Wenzhou, Zhejiang province, reflecting how even second-tier cities are taking ambitious steps to cash in on the industry

  • Nvidia says GAIN AI Act would restrict competition, likens it to AI Diffusion Rule // The AI GAIN Act would restrict global competition for advanced chips, with similar effects on the U.S. leadership and economy as the AI Diffusion Rule, which put limits on the computing power countries could have

  1. Bot Butcher - An anti-spam tool designed to protect your inbox from unwanted messages

  2. TTcare - An AI-powered mobile app that helps pet parents monitor the health of their dogs and cats

  3. Alter AI - A tool that transforms amateur selfies into professional-looking headshots

  4. Convai - A platform to create NPC characters and assets for games

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