OpenAI’s plan to build its own AI chip is hitting funding snags. The first phase with chip designer Broadcom costs around 18 billion dollars, according to The Information. Broadcom won’t finance production unless Microsoft commits to buying about 40 percent of the chips, essentially using Microsoft’s creditworthiness as a safety net. Microsoft hasn’t agreed yet.

OpenAI manager Sachin Katti called the Microsoft dependency “financially unattractive” and a long-term drag in an internal message. The company is pushing ahead for the strategic upside, though Katti noted this arrangement would only apply to the first chip.

The full project, codenamed “Nexus,” targets 10 gigawatts of data center capacity and could cost up to 180 billion dollars in chip production alone. The first chip, “Jalapeno,” is designed to run OpenAI’s models more efficiently than Nvidia’s hardware but isn’t expected until 2027.

It’s the second time OpenAI’s status as a private company has complicated a major deal. SoftBank reportedly had to slash a planned loan—originally backed by OpenAI shares—from 10 billion to 6 billion dollars because lenders couldn’t reliably value a private company like OpenAI.