OpenAI has announced a strategic partnership with Broadcom to develop its own 10 gigawatts of AI processors, enough to power more than 8 million American homes. The project marks a new phase in the race for computing resources for generative AI.
The companies said OpenAI will design the chips, and Broadcom will develop and deploy them in production starting in the second half of 2026. The systems will run on Broadcom’s own Ethernet and networking hardware, giving the company an edge over smaller competitors and creating an alternative to Nvidia. The deployment is expected to be completed by the end of 2029.
The partnership reinforces a global trend where tech giants are increasingly creating their own AI chips to reduce their dependence on Nvidia, whose processors remain expensive and limited in supply. Similar attempts have been made by Google, Amazon, Microsoft and Meta, but not all have been able to match Nvidia’s performance.
OpenAI has been actively expanding its “chip portfolio” for several weeks. Last week, the company signed an agreement with AMD to supply 6 gigawatts of AI chips with the option to buy a share of the manufacturer. Earlier it became known that Nvidia plans to invest up to $100 billion in OpenAI, providing it with data centers with a capacity of at least 10 gigawatts.
For Broadcom, this is another step towards consolidating its position in the artificial intelligence market. The company previously announced a contract for $10 billion with an unnamed client (presumably OpenAI), and its shares have grown almost sixfold since the end of 2022. The well-known manufacturer of networking equipment is now becoming one of the key players in the field of AI hardware.
The partnership between OpenAI and Broadcom is not just another technology deal. It is an attempt to create a fully autonomous computing ecosystem that will allow OpenAI not only to reduce costs, but also to control the critical infrastructure for the development of artificial intelligence. In an era of growing demand for AI power, this could be a decisive factor in the global race of technology companies.
