OpenAI said Monday it is working with chipmaker Broadcom to design its own system artificial intelligence Computer chips.
The two California companies did not disclose the financial terms of the deal, but they said they would begin deploying new shelves of dedicated “AI accelerators” late next year.
It’s the latest big deal between OpenAI, the maker of ChatGPT, and companies that build the chips and data centers needed to power AI.
In recent weeks, OpenAI has announced partnerships with chipmakers Nvidia and AMD that will provide the AI startup with specialized chips to power its AI systems. OpenAI has also struck major deals with Oracle, CoreWeave and other companies developing the data centers where those chips are housed.
Many of the deals rely on circular financing, with companies investing in OpenAI and supplying the technology to the world’s most valuable startup, raising concerns About the AI bubble. OpenAI is not yet profitable, but it says its products now have more than 800 million weekly users.
“What’s real about this announcement is OpenAI’s intention to have its own custom chips,” said analyst Gil Loria, head of technology research at DA Davidson. “The rest is fantasy. OpenAI has, at this point, made nearly $1 trillion in commitments, and is a company that only has $15 billion in revenue.”
Sam Altman, CEO of OpenAI, said work with Broadcom to develop a custom chip began about 18 months ago. Broadcom is also working with other leading AI developers, including tech giants Amazon and Google.
The computing power made possible through the Broadcom partnership will reach 10 gigawatts, Altman said in a podcast announcing the deal, which he described as “an enormous amount of computing infrastructure to serve the world’s needs to use advanced intelligence.”
Broadcom shares rose more than 9% on Monday.
Broadcom CEO Hock Tan said on the same podcast that OpenAI needs more computing power as it moves toward a “better and better parametric model and toward superintelligence.”
“If you make your own chips, you control your own destiny,” he added.