OpenAI announced a multibillion-dollar partnership with Broadcom (AVGO) to co-develop and deploy 10 gigawatts of custom artificial intelligence chips over the next four years, a move aimed at meeting the company’s rapidly growing computing demands.
Under the agreement, OpenAI will design its own GPUs with Broadcom handling manufacturing and deployment beginning in the second half of 2026. The deal adds to OpenAI’s expanding infrastructure partnerships with chipmakers as it scales its AI operations globally.
- The partnership, valued in the billions, will see Broadcom supply Ethernet and networking components for new AI server racks.
- Broadcom shares rose roughly 8% following the announcement, bringing its market capitalization above $1.5 trillion.
- The deal brings OpenAI’s total contracted compute capacity with Broadcom, Nvidia, and AMD to 26 gigawatts—over twice the summer power demand of New York City.
- OpenAI’s 2025 revenue is projected at $13 billion, underscoring the massive financing gap for its infrastructure expansion.
- CEO Sam Altman has set a goal of 250 gigawatts of compute capacity by 2033, a project that could exceed $10 trillion in cost.
Relevant Companies
- Broadcom (AVGO) — Partnering with OpenAI to co-develop custom AI chips and networking infrastructure.
Editor’s Note: This is a developing story. This article may be updated as more details become available.
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