OpenAI partners with Broadcom to design its own AI chips
SAN FRANCISCO– SAN FRANCISCO (AP) — OpenAI announced Monday that it is working with chipmaker Broadcom to design its own artificial intelligence computer chips.
The two California companies did not disclose financial terms of the deal, but said they would begin rolling out the new custom “AI accelerator” racks late next year.
It’s the latest big deal between OpenAI, maker of ChatGPT, and the companies that build the chips and data centers needed to make AI work.
OpenAI has announced partnerships with chipmakers Nvidia and AMD in recent weeks that will provide the AI startup with specialized chips to run its AI systems. OpenAI also has big deals with Oracle, CoreWeave and other companies developing the data centers where these chips are housed.
Many deals rely on circular financing, in which companies both invest in OpenAI and provide technology to the world’s most valuable startup, fueling concerns about an AI bubble. OpenAI is not yet turning a profit but says its flagship chatbot now has more than 800 million weekly users.
Sam Altman, CEO of OpenAI, said work on developing a custom chip began more than a year ago.
“Developing our own accelerators adds to the broader ecosystem of partners who are all building the capabilities needed to push the frontiers of AI and bring benefits to all of humanity,” he said in a statement.
Broadcom shares jumped more than 9% Monday after the morning announcement.
Broadcom CEO Hock Tan said in a statement that “we are excited to co-develop and deploy 10 gigawatts of next-generation accelerators and networking systems to lead the way for the future of AI.”
