OpenAI and Broadcom Strike a Deal for a New AI Chip

Though an official announcement has yet to be made, Broadcom and OpenAI look to be collaborating on a new AI chip. The Financial Times reported the deal, which would produce the first AI chip of OpenAI's own. OpenAI has been looking for ways to diversify its hardware, which is currently dominated by AMD and Nvidia.

Moving to a proprietary AI chip is par for the course, at the moment. As Reuters points out, Amazon, Google, and Meta have all sunk money into custom AI hardware. With AI's biggest players looking to add hardware to the supply provided by Nvidia, Broadcom appears to have seized a lucrative opportunity. Reuters put the possible boost to Broadcom's valuation at an additional $200 billion.

Though Broadcom hasn't announced the deal, a contract with OpenAI seems likely. A separate report by Reuters noted that Broadcom has a new, unnamed client with ...