OpenAI and Broadcom ink 10GW chip deal
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The news: OpenAI has tapped Broadcom to collaborate on custom chips and networking equipment, as the ChatGPT maker scrambles to secure computing power required to meet demand for its services.
The context: In a joint statement released on Monday, the companies said that OpenAI would design chips which Broadcom would then develop and deploy, commencing in the second half of 2026.
The companies also said they planned to roll out 10 gigawatts worth of AI data centre capacity.
By designing its own chips and processors, OpenAI said that it will be able to embed what it’s learned from developing frontier models and products directly into the hardware, unlocking new levels of capability and intelligence. The hardware rollout should be completed by the end of 2029, according to the companies.
In a podcast released by OpenAI, CEO Sam Altman said that his company has been working with Broadcom for 18 months. He added: “Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI to provide benefits to all humanity.”
The deal confirms an arrangement that Broadcom CEO Hock Tan had hinted at during an earnings conference call last month.
OpenAI has signed a swath of deals this year with the likes of AMD, Nvidia, Samsung, CoreWeave and Microsoft among others to meet soaring demand for AI computing power.
The numbers: The news pushed shares in Broadcom up 12% in premarket trading in New York on Monday.
