GPU giant Nvidia plans to launch a new business unit focused on designing custom chips for clients including the cloud hyperscalers.

Reuters reports that the company has already discussed designing bespoke chips for Amazon, Meta, Microsoft, Google, and OpenAI.

Among the chips it would design are advanced artificial intelligence semiconductors, which would be developed alongside the more generalized Nvidia H100 and A100 GPUs that have formed the backbone of the current generative AI boom.

Custom chips designed for specific workloads can be cheaper and more energy efficient than GPUs, but offer less flexibility. Hyperscalers have also developed their own custom chips, while numerous AI chip startups are hoping to develop specialized hardware.

Outside of the core data center market, Nvidia is also targeting telecoms, automotive, and video game customers. It is reportedly working with telecoms OEM Ericsson for a wireless chip that build on GPU-based technology.

Nvidia's share price has risen nearly 500 percent in the past 12 months on the back of booming GPU sales and investor expectations over AI growth.