Technology giant Broadcom shares jumped almost 10% after it announced it would build OpenAI’s first in-house artificial intelligence (AI) processors.
Under the strategic collaboration, Broadcom said it would co-develop systems with OpenAI , including accelerators and Ethernet solutions for “scale-up and scale-out” between 2026 and 2029.
OpenAI will design 10 gigawatts (GW) of custom AI accelerators, which are hardware components designed to speed up AI workloads, especially those involving machine learning and deep learning.
“Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI’s potential and deliver real benefits for people and businesses,” OpenAI Co-Founder and CEO Sam Altman said in a joint media release.
“Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI to provide benefits to all humanity.”
Broadcom President and CEO Hock Tan said the collaboration with OpenAI was a pivotal moment in the pursuit of artificial general intelligence.
This is the latest deal signed by OpenAI as it tries to build the computing power needed to meet surging demand for its services, like the ChatGPT AI chatbot.
Over the last three weeks, the not-for-profit research and development company has announced about 33GW of computing commitments through partnerships with Nvidia, Oracle, AMD and Broadcom.
Broadcom shares (NASDAQ: AVGO) surged $32.07 (9.88%) to close at $356.70 on Monday (Tuesday AEDT), capitalising the company at $1.68 trillion (A$2.58 trillion).
It designs, develops and supplies a broad range of semiconductor, enterprise software and security solutions.
OpenAI has more than 800 million weekly active users and strong adoption across global enterprises, small businesses and developers.
