OpenAI announces Broadcom deal
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Microsoft is facing a new lawsuit from consumers who allege the technology giant illegally inflated prices for generative artificial intelligence through a secret agreement with ChatGPT maker OpenAI.
OpenAI and Broadcom have signed a multiyear agreement to collaborate on custom AI chips and networking equipment, aiming to add 10 gigawatts of capacity by 2026. This partnership enhances OpenAI's infrastructure to improve AI capabilities and is expected to be completed by 2029.
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The companies said OpenAI would design the chips, which Broadcom will develop and deploy starting in the second half of 2026. AMD agreed to supply artificial intelligence chips to OpenAI in a multi-year deal that would also give the ChatGPT creator the option to buy up to roughly 10% of the chipmaker.
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OpenAI has partnered with Broadcom to design custom AI processors, aiming to boost efficiency and reduce reliance on external chip suppliers. This collaboration, alongside deals with Nvidia and AMD, signals OpenAI's significant infrastructure expansion to meet surging AI demand.
Greg Brockman says OpenAI used its own AI to design chips with Broadcom, finding optimizations that human designers would've needed weeks to spot.
OpenAI collaborates with Broadcom to develop custom AI processors, addressing computing demands. Chips expected by mid-2026.