Chip Deal: OpenAI and Broadcom Develop Own AI Processor

ChatGPT developer OpenAI has commissioned US chip manufacturer Broadcom to develop its first in-house processor for artificial intelligence (AI). This latest chip deal is part of OpenAI's efforts to secure the increasing demand for computing power amid the AI boom. Broadcom's stock rose sharply after the agreement became known.

OpenAI and Broadcom announced their strategic collaboration for 10 gigawatts of custom AI accelerators on Monday. OpenAI will design the chips, which Broadcom will develop and deploy in the second half of next year. The chips are intended to meet the world's growing demand for AI and will be used in OpenAI's facilities as well as in the data centers of partner companies, it is stated. "The partnership with Broadcom is an important step in building the infrastructure required to unlock the potential of AI," said Sam Altman, CEO of OpenAI. There have been rumors for some time that OpenAI and Broadcom want to develop their own AI chips Rumors that OpenAI and Broadcom aim to develop their own AI chips.

Financial details of the now announced long-term agreement were not disclosed. It is unclear how OpenAI will finance the deal. "Financing such a large chip deal will likely require a combination of funding rounds, pre-orders, strategic investments, and support from Microsoft, as well as the use of future revenue streams and potential credit facilities," said Gadjo Sevilla, an analyst at eMarketer, to the news agency Reuters to the news agency Reuters.

AI Boom Accelerates Investments

The collaboration between OpenAI and Broadcom is part of massive chip investments recently and months. In the race to develop powerful AI systems, the tech industry faces a growing demand for computing power.

The agreement will "enable groundbreaking advances in AI," said Greg Brockman, President of OpenAI, in the company's own statement. "By developing our own chip, we can directly incorporate what we have learned from developing groundbreaking models and products into the hardware, thus unlocking new levels of performance and intelligence."

Last week, OpenAI already announced the purchase of AI chips with a total capacity of six gigawatts from AMD for several billion US dollars over a period of five years the purchase of AI chips with a total capacity of six gigawatts from AMD for several billion US dollars. To give weight to the purchase intentions, the deal includes the option of an equity stake for OpenAI in AMD should various target marks be reached. At the end of September, US chip manufacturer Nvidia announced that it would invest a total of 100 billion US dollars in OpenAI to implement the "largest AI infrastructure project in history" a total of 100 billion US dollars in OpenAI. As part of the cooperation, both corporations intend to build new data centers jointly that will comprise at least ten gigawatts of power.

(akn)