OpenAI Taps Broadcom for AI Chip Design Breakthrough

OpenAI is collaborating with Broadcom to create custom AI computer chips. This partnership marks a significant step for OpenAI in developing specialized technology for its AI systems, like ChatGPT. Broadcom's stock surged following the announcement, reflecting investor optimism in powering AI advancements.

OpenAI, on Monday, announced its partnership with chipmaker Broadcom to create its own custom artificial intelligence computer chips. The financial arrangement between the two California-based companies remains undisclosed, but plans to deploy the customized AI accelerators are set for late next year.

This agreement is the latest in a series of strategic moves by OpenAI, known for developing ChatGPT, to collaborate with key industry players. Previously, OpenAI has forged partnerships with Nvidia and AMD for specialized chips, and with Oracle and CoreWeave for data center collaborations.

The development of custom chips stems from investments within the AI sector, sparking concerns of a potential AI bubble. Despite not yet achieving profitability, OpenAI boasts over 800 million weekly users for its chatbot and views the custom accelerator as pivotal for advancing AI technology globally.

(With inputs from agencies.)