OpenAI Partners With Broadcom To Design Own AI Chips
OpenAI has entered a strategic partnership with Broadcom, one of the world’s leading semiconductor companies, to co-develop advanced computer chips designed to make artificial intelligence (AI) faster, smarter, and more efficient.
Under the new agreement, both companies will produce AI accelerator racks—large computing systems powered by Broadcom’s high-speed networking technology. The collaboration aims to create up to 10 gigawatts of computing power to support OpenAI’s rapidly growing ecosystem of AI models and tools.
The ambitious project is set to begin in 2026 and reach completion by 2029.
A Milestone for AI Infrastructure
Sam Altman, co-founder and CEO of OpenAI, described the partnership as a pivotal milestone in advancing global AI capabilities.
“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,” Altman said.
“Developing our own accelerators adds to the broader ecosystem of partners building the capacity required to push the frontier of AI and provide benefits to all humanity.”
By designing its own AI accelerators, OpenAI plans to integrate insights from its cutting-edge models—like GPT—directly into the hardware. This approach promises to deliver better performance and greater energy efficiency across its systems.
Broadcom’s Role in Shaping the AI Future
Hock Tan, President and CEO of Broadcom, emphasized that the collaboration represents a defining moment for both AI and semiconductor innovation.
“Our partnership with OpenAI marks a turning point in the pursuit of artificial general intelligence,” Tan stated.
“Together, we’re developing and deploying 10 gigawatts of next-generation accelerators and network systems to drive the next wave of AI evolution.”
Tan highlighted how the alliance demonstrates the convergence of chip technology and AI research, setting new performance and scalability benchmarks in the computing industry.
Integrating AI Expertise Into Hardware
Greg Brockman, OpenAI’s co-founder and president, said the Broadcom partnership will significantly improve AI performance and accessibility. By designing custom chips in-house, OpenAI can directly translate its experience from developing advanced AI models into hardware-level optimization.
This move positions OpenAI among a small group of tech giants that design both AI models and the specialized processors powering them.
Charlie Kawwas, President of Broadcom’s Semiconductor Solutions Group, added that the collaboration establishes a new standard for energy-efficient, scalable AI systems.
He explained that OpenAI’s accelerators will be integrated with Broadcom’s Ethernet, PCIe, and optical connectivity technologies, enabling high-performance, cost-effective computing infrastructure.
Massive Investment and Expansion Strategy
OpenAI’s partnership with Broadcom follows a series of major investments and acquisitions in 2025 aimed at expanding its AI and hardware capabilities.
In April, OpenAI raised a record $40 billion funding round led by SoftBank, with participation from Microsoft, Coatue, Altimeter, and Thrive Capital. The funding valued the company at approximately $300 billion, making it one of the world’s most valuable private tech firms.
The funds will fuel ongoing AI research and infrastructure development.
OpenAI’s Strategic Acquisitions and Cloud Expansion
In a bold move into hardware, OpenAI agreed to acquire io Products, a startup co-founded by former Apple design chief Jony Ive, in a $6.5 billion all-stock deal. Ive will join OpenAI as Creative Head, leading the design of AI-powered devices for the next generation of consumer technology.
To strengthen its developer ecosystem, OpenAI also announced plans to acquire Windsurf (formerly Codeium), an AI coding platform that assists developers in writing and debugging code using natural language. The acquisition, reportedly valued at $3 billion, is still under negotiation.
Additionally, OpenAI finalized a $1.1 billion acquisition of Statsig, a product-testing startup. Statsig founder Vijaye Raji will join OpenAI as Chief Technology Officer of Applications, overseeing product engineering and infrastructure.
To power its expanding suite of AI tools, OpenAI also signed a $300 billion cloud computing deal with Oracle, securing 4.5 gigawatts of computing capacity over five years to support training and deployment of large-scale AI models.
A New Era of AI Hardware and Innovation
The OpenAI–Broadcom partnership signals a major shift in how AI infrastructure will be built and scaled. By merging semiconductor innovation with AI expertise, the companies are laying the groundwork for faster, more efficient, and more intelligent computing systems that could redefine the boundaries of artificial intelligence by the end of the decade.
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