OpenAI Announces Partnership with Broadcom to Deploy 10GW of Custom AI Chips, Sending Broadcom Shares Soaring!

On October 13 local time, artificial intelligence technology giant OpenAI and chip design leader Broadcom announced a collaboration to jointly develop custom AI accelerators for data centers requiring 10 gigawatts (GW) of power. OpenAI will design these accelerators and systems, partnering with Broadcom for development and deployment.

OpenAI stated that by designing its own AI chips and systems, it can directly embed the expertise gained from developing cutting-edge models and products into the hardware, thereby unlocking higher levels of functionality and intelligence. These racks will be fully expanded using Broadcom's Ethernet and other connectivity solutions and deployed across OpenAI's facilities and partner data centers to meet the world's growing AI demands.

OpenAI and Broadcom have entered into a long-term agreement for the joint development and supply of AI accelerators. The two companies have signed a term sheet to deploy racks incorporating AI accelerators and Broadcom networking solutions.

Sam Altman, OpenAI Co-Founder and CEO, stated: “Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI's potential and deliver tangible benefits to individuals and businesses. Developing our own accelerators will further enrich a broader ecosystem of partners working together to build the capabilities necessary to advance the frontiers of AI for the benefit of all humanity.”

Fuyang Chen, President and CEO of Broadcom, remarked: "Broadcom's collaboration with OpenAI marks a pivotal moment in our exploration of general artificial intelligence. Since ChatGPT's inception, OpenAI has been at the forefront of the AI revolution. We are thrilled to jointly develop and deploy next-generation 10-gigawatt accelerators and networking systems, paving the way for AI's future."

OpenAI Co-Founder and President Greg Brockman stated: "Our collaboration with Broadcom will accelerate breakthroughs in AI and bring the technology's full potential closer to reality. By building our own chips, we can embed the knowledge gained from creating cutting-edge models and products directly into the hardware, unlocking higher levels of capability and intelligence."

Dr. Charlie Kawwas, President of Broadcom's Semiconductor Solutions Division, stated: "Our collaboration with OpenAI will continue to set new industry benchmarks for designing and deploying open, scalable, and energy-efficient AI clusters. Custom accelerators combined with standards-based Ethernet scale-up and scale-out networking solutions deliver cost- and performance-optimized next-generation AI infrastructure. These racks leverage Broadcom's end-to-end portfolio of Ethernet, PCIe, and optical connectivity solutions, further solidifying our leadership in AI infrastructure offerings."