OpenAI manufactures its own AI chips with the help of Broadcom

OpenAI is hungry for as much computing power as it can get, and the company has signed another deal with a chip maker to help make that happen. This time, we cooperated with Broadcom to Creating custom chips and systems For use in OpenAI’s infrastructure and its partners’ data centers.

OpenAI designs “AI accelerators and systems.” Broadcom will begin deploying these racks in the second half of next year, the companies said. The goal is to complete the offering by the end of 2029. The two companies are said to have started working together 18 months ago.

The deal is for 10 gigawatts of chips and is worth “billions of dollars,” according to The Wall Street Journal. It was I mentioned last month That OpenAI and Broadcom were making custom chips together. For what it’s worth, the latter’s CEO recently said that an unnamed new client had placed an order worth $10 billion.

The Broadcom deal follows OpenAI’s recent agreements with NVIDIA and AMD. Nvidia is Investing $100 billion in OpenAI It will provide it with 10 gigawatts of artificial intelligence infrastructure. The deal with AMD is for six gigawatts of computing power. It is said that OpenAI AMD paid tens of billions of dollars Under this agreement, you could eventually acquire up to a 10 percent stake in the company. As with the Broadcom rollout, both NVIDIA and AMD are expected to begin deployment in the second half of 2026. Signed a deal with Oracle in July with a data center capacity of 4.5 gigawatts as part of its project Stargate project.

According to recent reports, OpenAI CEO Sam Altman He told the staff He wants the company to build 250 gigawatts of computing power over the next eight years, a significant increase from the 2 gigawatts it is expected to have by the end of this year. (For context, 250 gigawatts represents about one-fifth of the power generation capacity in the entire United States, Which amounts to about 1200 gigawatts.)

As it stands, purchasing this much energy would likely cost around $10 trillion. Altman said OpenAI would have to develop new funding tools to make that happen, but he didn’t say much about what those might look like. Even its current deals put OpenAI on the hook for hundreds of billions of dollars.

While the likes of NVIDIA and Microsoft We’ve invested heavily in OpenAI, and there’s no backer on the planet that can pump $10 trillion into the company. As it stands, OpenAI is a long way from making up the difference in revenue as well. It is said to expect to generate $13 billion in revenue this year.