OpenAI partners with Broadcom to deploy custom AI chips

OpenAI is collaborating with chip manufacturer Broadcom The two companies said in blog posts on Monday that they will develop and deploy newly designed artificial intelligence chips.

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The deal will include OpenAI design systems and accelerators, specialized hardware used to perform difficult calculations, and Broadcom will deploy these chips. OpenAI says developing its own chips will allow it to use what it has learned to develop frontier AI models and better tune its hardware to unlock new capabilities.

(Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging that it infringed Ziff Davis’s copyrights in training and operating its AI systems.)

“Partnering with Broadcom is a critical step in building the infrastructure needed to unlock the potential of AI and deliver real benefits to individuals and businesses,” Sam Altman, co-founder and CEO of OpenAI, said in the blog post. “The development of our accelerators adds to the broader ecosystem of partners, all of whom are building the capabilities required to push the boundaries of AI for the benefit of all of humanity.”

Broadcom is also excited about the OpenAI partnership.

“Our partnership with OpenAI continues to set new industry standards for the design and deployment of open, scalable, and power-efficient AI clusters,” said Charlie Kawas, President, Broadcom Semiconductor Solutions Group. “Dedicated accelerators combine remarkably well with standards-based Ethernet networking solutions and scale to provide cost- and performance-optimized next-generation AI infrastructure.”

The server racks will include Broadcom’s range of Ethernet, PCIe and optical connectivity products.

Representatives for OpenAI and Broadcom did not immediately respond to requests for comment.

Artificial intelligence is on the rise

Companies have been eager to strike deals with OpenAI in recent months. The company’s core product, ChatGPT, is now a household name and launched the AI ​​revolution. And proud now 800 million weekly active users And its new Sora 2 It was a generative video model Flood the Internet with compelling AI clips.

Last month, the chip giant Nvidia invested $100 billion in OpenAI To build data centers with a capacity of 10 gigawatts. Earlier this month, AMD traded 160 million shares of its stockor 10% of the company, in exchange for OpenAI purchasing the upcoming six-gigawatt MI450 chipset, which is still under design.

However, these deals continue to generate AI buzz Some fear that such news could fuel an AI bubble. Meanwhile, many of these technology companies are buying from each other, trading investments and driving up each other’s values, along with the market overall.

Some fear that the stock market will quickly turn into a house of cards built on artificial intelligence, the great resonance of which could lead to the collapse of the entire group, damaging the economy. To put it somewhat simply, AI investments have been so massive that… Consumer spending in the United States has exceeded. As a result, Nvidia, Microsoft, and Google have all crossed $3 trillion in valuations. In fact, Nvidia has already been valued at $4 trillion, which it already is Larger than the entire market shares From Italy, Germany, France, the United Kingdom and Canada. The problem is that the profitability of expensive AI systems has not yet been proven.