OpenAI is making another massive move to secure its future, announcing a new partnership with the chipmaker Broadcom to produce its first-ever in-house artificial intelligence processors. The deal, which sent Broadcom’s stock soaring, is the latest in a series of huge chip tie-ups for the company behind ChatGPT as it races to get the computing power it needs.
Under the partnership, OpenAI will design the chips, and Broadcom will develop and deploy them, with the first chips expected to roll out in the second half of 2026. This is a major step for OpenAI, placing it in the same league as tech giants like Google and Amazon, who are also designing their own custom chips to reduce their reliance on expensive and hard-to-get processors from Nvidia.
While most analysts don’t think this new deal will seriously challenge Nvidia’s dominance in the AI chip market, it is a clear sign of just how hungry the tech industry is for more computing power.
The announcement comes just after OpenAI unveiled a massive chip supply deal with AMD and another with Nvidia, showing the company is diversifying its suppliers and hedging its bets. “Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI’s potential,” said OpenAI CEO Sam Altman.
The financial details of the deal were not released, and it’s not clear how OpenAI will pay for it. But with the incredible investor confidence in the company, it’s a safe bet that the AI giant will have no trouble finding the money for its ambitious plans.
