OpenAI partners with Broadcom to design its own AI chips

OpenAI It said Monday it is working with chipmaker Broadcom to design its own artificial intelligence computer chips.

Two California The companies did not disclose financial terms of the deal, but said they would begin deploying new racks of customized “AI accelerators” late next year.

This is the latest big deal among creators OpenAI chatgptAnd companies that make the chips and data centers needed to power AI.

In recent weeks OpenAI has announced partnerships with chip makers NVIDIA and AMD, which will supply the AI ​​startup with specialized chips to run its AI systems. OpenAI has also made a big deal OracleCoreWeave and other companies are developing data centers where those chips are housed.

Many deals rely on circular financing, with companies investing in OpenAI and supplying technology to the world’s most valuable startups, raising concerns about an AI bubble. OpenAI doesn’t make a profit yet but says its products now have more than 800 million weekly users.

“The real thing about this announcement is OpenAI’s intention to have its own custom chips,” said analyst Gil Luria, head of technology research at DA Davidson. “The rest is hypothetical. OpenAI has made $1 trillion in commitments at this point, and this is a company that only has $15 billion in revenue.”

OpenAI CEO Sam Altman said work with Broadcom to develop the custom chip began about 18 months ago. Broadcom also works with other major AI developers, including tech giants Amazon and Google.

Altman said on a podcast announcing the deal that the computing power made possible through the Broadcom partnership would be 10 gigawatts, which he described as “a massive amount of computing infrastructure to meet the world’s needs to harness advanced intelligence.”

Broadcom shares rose more than 9% on Monday.

Broadcom CEO Hock Tan said on the same podcast that OpenAI needs more computing capacity as it moves toward “better and better frontier models and superintelligence.”

He said, “If you do your own work, you control your destiny.”