As part of its latest chip tie-up for the ChatGPT maker, OpenAI has partnered with Broadcom to produce its first in-house artificial intelligence processors. The companies said on Monday that OpenAI would design the chips, which Broadcom will develop and deploy starting in the second half of 2026. They will roll out 10 gigawatts' worth of custom chips. The power consumption will be roughly equivalent to the needs of more than 8 million U.S. households or five times the electricity produced by the Hoover Dam.
"Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI's potential," OpenAI CEO Sam Altman said in a statement.
Financial details of the agreement were not disclosed and it was not immediately clear how OpenAI would fund the deal.
The OpenAI-Broadcom deal is the latest in a string of massive chip investments that have highlighted the technology industry's surging appetite for computing power as it races to build the most sophisticated AI systems.
Only last week OpenAI unveiled a 6-gigawatt AI chip supply deal with AMD that includes an option to buy a stake in the chipmaker. This development came days after disclosing that Nvidia plans to invest up to $100 billion in the startup and provide it with data-center systems with at least 10 gigawatts of capacity.
Most analysts do not expect the deal to challenge Nvidia's grip on the AI accelerator market, given the significant challenge of designing, scaling and manufacturing in-house chips from the ground up.
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