(Updates with OpenAI's reply in the fourth paragraph.)

Microsoft-backed (MSFT) OpenAI and Samsung Electronics are increasingly cooperating on joint production and research for next-generation chips, Reuters reported Wednesday, citing executive Harrison Kim, general manager of OpenAI Korea.

Kim said OpenAI and Samsung have made progress on joint production and research involving next-generation chips that OpenAI is developing, according to Reuters.

Kim described Samsung Electronics as among the largest-scale deployments of ChatGPT worldwide, with applications in its research and development, marketing and sales departments, the report said.

OpenAI downplayed the report. "The reference to expanding our collaboration with Samsung was made in the context of our existing relationship, including Samsung Electronics' adoption of ChatGPT and the LOI announced last October," a spokesperson said. "We have nothing new to announce. We did not announce plans to manufacture chips through Samsung."

Samsung Electronics said it could not confirm customer-related information, Reuters reported. It did not reply to MT Newswires' request for comment.

(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.)