Overview

• OpenAI and Broadcom signed a term sheet for a multi‑year collaboration to co‑develop and deploy racks of OpenAI‑designed accelerators integrated with Broadcom’s Ethernet networking.
• Deployments are scheduled to start in the second half of 2026 and roll out through 2029 across OpenAI facilities and partner data centers.
• Broadcom’s shares jumped about 10%, adding roughly $150 billion in market value after the announcement, while financial terms were not disclosed.
• The 10‑gigawatt target underscores the scale of next‑gen AI infrastructure, with reports equating the power draw to a major city’s peak demand.
• The agreement extends OpenAI’s rapid 2025 compute buildout, complementing a ~10 GW Nvidia framework and a ~6 GW AMD deal with warrants, even as financing, supply‑chain capacity, and energy availability remain key risks.