OpenAI has entered into a partnership with Broadcom to produce its first artificial intelligence (AI) chips within its own facilities. This is the latest collaboration by the developer of ChatGPT as it races to secure the computing power needed to meet the growing demand for its services.
Broadcom shares rose more than seven percent in early trading.
The two companies said on Monday that OpenAI will design the chips, which Broadcom will develop and deploy starting in the second half of 2026.
The companies plan to launch custom chips with a total computing power of 10 gigawatts — roughly equivalent to the energy needs of more than eight million U.S. homes, or five times the electricity output of the Hoover Dam.
This agreement is the latest in a series of major investments in AI chips, highlighting the technology industry’s growing demand for computing power as it competes to build systems that match or surpass human intelligence.
Last week, OpenAI announced a deal with AMD to supply AI chips with a capacity of six gigawatts, which includes an option to acquire a stake in the chip manufacturer. This came just days after Nvidia revealed plans to invest up to $100 billion in the startup and provide it with data center systems with at least 10 gigawatts of capacity.
Sam Altman, CEO of OpenAI, said in a statement, “The partnership with Broadcom is a crucial step in building the infrastructure needed to harness the potential of artificial intelligence.”
The financial details of the agreement have not been disclosed, and it remains unclear how OpenAI will fund the deal.
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