Broadcom Partners with OpenAI to Develop Custom AI Accelerators
Broadcom's stock surged after announcing a collaboration with OpenAI to develop 10 gigawatts of custom AI accelerators. The partnership leverages Broadcom's networking technology, with deployment starting in late 2025 and completion targeted for 2029. This follows similar deals by Nvidia and AMD, signaling OpenAI's aggressive infrastructure expansion.
Nvidia's $100 billion investment in OpenAI contrasts with Broadcom's non-equity partnership. At $50 billion per gigawatt, the total build-out could represent a $500 billion opportunity for chipmakers. OpenAI now has commitments exceeding 30 gigawatts across four major semiconductor partners.