OpenAI is making its own AI chips with Broadcom's help
A Broadcom logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/IllustrationREUTERS / ReutersOpenAI is hungry for as much compute power as it can get its hands on, and the company has signed another deal with a chipmaker to help make that happen. This time around, it's teaming up with Broadcom to make custom chips and systems for use in both OpenAI's infrastructure and its partners' data centers. OpenAI is designing the "AI accelerators" and systems. Broadcom will start deploying those racks in the second half of next year, the companies said. The aim is to complete the rollout by the end of 2029. The two companies are said to have started working together 18 months ago.The deal is for 10 gigawatts of chips and it's worth "multiple billions of dollars," according to The Wall Street Journal. It was reported last month that OpenAI and Broadcom were making custom chips together. For what it's worth, the latter's CEO said recently that a new, unnamed client had put in an order worth $10 billion.The Broadcom deal follows agreements that OpenAI recently struck with both NVIDIA and AMD. NVIDIA is investing $100 billion into OpenAI and will provide it with 10 gigawatts of AI infrastructure. The deal with AMD is for six gigawatts of compute power. OpenAI is said to be paying AMD tens of billions of dollars under that agreement and it could ultimately take up to a 10 percent stake in the company. As with the Broadcom rollout, both the NVIDIA and AMD deployments are expected to start in the second half of 2026. OpenAI also inked a deal with Oracle in July for 4.5 gigawatts in data center capacity as part of its Stargate Project.According to recent reports, OpenAI CEO Sam Altman told employees that he wanted the company to build out 250 gigawatts of compute power over the next eight years, significantly up from the 2GW it's expected to have by the end of this year. (For context, 250GW is about a fifth of the energy generation capacity of the entire US, which sits at around 1,200GW.) As things stand, it would likely cost around $10 trillion to buy that much capacity. Altman said OpenAI would have to develop new financing tools to make that happen, but he hasn't elaborated much on what those might look like. Even its current deals have OpenAI on the hook for hundreds of billions of dollars. While the likes of NVIDIA and Microsoft have invested heavily into OpenAI, there isn't a backer on the planet that can plow $10 trillion into the company. As things stand, OpenAI is very, very far away from making up the difference in revenue too. It's reportedly expecting to make $13 billion in revenue this year.This article originally appeared on Engadget at https://www.engadget.com/ai/openai-is-making-its-own-ai-chips-with-broadcoms-help-142242231.html?src=rss
