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9h ago

OpenAI Seals Broadcom Pact to Co‑Develop 10 GW of Custom AI Accelerators Starting in 2026

The tie-up advances OpenAI’s shift to bespoke silicon to secure efficiency gains at vast scale.

AI (Artificial Intelligence) letters and robot hand are placed on computer motherboard in this illustration created on June 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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A smartphone with a displayed AMD logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration

Overview

  • OpenAI and Broadcom signed a multi‑year agreement to build and deploy 10 gigawatts of OpenAI‑designed accelerator racks and networking, with rollouts scheduled from the second half of 2026 through 2029.
  • Under the deal, OpenAI designs the chips and systems while Broadcom develops, manufactures, and installs full racks using its Ethernet‑based networking for scale‑up and scale‑out clusters.
  • Broadcom’s shares jumped roughly 10%–13% on the news, adding more than $150 billion in market value, as investors bet on the company’s deeper role in AI infrastructure.
  • The move extends a recent spree of capacity deals that includes OpenAI’s multi‑GW agreement with AMD featuring performance‑linked warrants, Nvidia’s letter of intent for at least 10 GW with up to $100 billion of staged investment, and a reported $300 billion Oracle cloud arrangement.
  • The scale underscores resource and oversight challenges, with 10 GW comparable to the power needs of over 8 million U.S. households and analysts warning about financing complexity, market concentration, and circular deal structures.