OpenAI partners with Broadcom to design its own AI chips
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 making a profit but says its products now have more than 800 million weekly users.
“What’s real 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 fantastic. OpenAI has, at this point, almost $1 trillion in commitments, and it’s a company that only has $15 billion in revenue.”
Sam Altman, CEO of OpenAI, said work with Broadcom to develop a custom chip began about 18 months ago. Broadcom also works with other leading AI developers, including tech giants Amazon and Google.
Altman said in a podcast announcing the deal that the computing power made possible through the Broadcom partnership will amount to 10 gigawatts, which he described as “a gigantic amount of computing infrastructure to meet the world’s need for the use of advanced intelligence.”
Broadcom shares jumped more than 9% on Monday.
Broadcom CEO Hock Tan said on the same podcast that OpenAI needs more computing capacity as it moves toward a “better and better frontier model and toward superintelligence.”
“If you make your own chips, you control your destiny,” he added.
