OpenAI Plans AI Chip Production With Broadcom by 2026
OpenAI is set to begin manufacturing its own artificial intelligence chip from 2026 in partnership with Broadcom Inc (NASDAQ: AVGO), according to a report from the Financial Times on Thursday. The move aims to meet the company’s growing computing power demands while reducing dependence on Nvidia.
$10 Billion Commitment to Broadcom
Broadcom CEO Hock Tan revealed that the company had secured a new customer with a $10 billion chip order. The FT report identified that client as OpenAI. The ChatGPT maker reportedly plans to use the custom chips internally rather than selling them to outside customers.
OpenAI had started working with Broadcom on AI chip development last year, but the timeline for mass production had remained unclear until now.
Following the Lead of Big Tech
The decision aligns OpenAI with other tech giants such as Google, Amazon, and Meta, which are all designing specialized chips to power their AI workloads. These in-house solutions aim to enhance performance and efficiency while giving firms greater control over their infrastructure.
Boost for Broadcom Shares
The FT report was published shortly after Broadcom posted strong quarterly earnings and delivered an optimistic outlook for the current quarter. Broadcom’s stock rose 4.5% in after-hours trading following the news.
