OpenAI Partners with Broadcom to Build 10 Gigawatts of Custom AI Chips, Stock Surges Nearly 10%
Summary
OpenAI partners with Broadcom to build 10 gigawatts of custom AI chips starting late next year, sending Broadcom stock soaring nearly 10% as the deal helps reduce compute costs and brings OpenAI's total compute commitments to 33 gigawatts across multiple chip partnerships.
Key Points
- OpenAI and Broadcom announce partnership to build and deploy 10 gigawatts of custom AI accelerators, with chip deployment starting late next year after 18 months of collaboration
- Broadcom stock surges 9.88% following the deal announcement, as the custom chips aim to reduce OpenAI's compute costs compared to current GPU pricing
- OpenAI now has approximately 33 gigawatts of total compute commitments across recent partnerships with Broadcom, Nvidia, Oracle, and AMD to support its AI infrastructure expansion