OpenAI has partnered with Broadcom to develop and deploy 10 gigawatts of custom AI chips over the next four years, addressing the startup's significant computing requirements. The collaboration will utilize Broadcom's Ethernet technology and will be implemented in both OpenAI's and third-party data centers.

OpenAI and Broadcom have announced a multi-year partnership to develop and deploy 10 gigawatts of AI accelerators and networking systems. This collaboration aims to enhance AI infrastructure, meeting the increasing global demand for advanced AI capabilities.

Broadcom's recent agreement to develop chips and computing systems with OpenAI has initially boosted its stock, but the long-term viability of the partnership raises concerns. OpenAI's ambitious plans and projected revenue fall short of covering the enormous costs of its projects, leading to questions about how the company will finance its expansion.

OpenAI plans to release its first artificial intelligence chip in 2026, collaborating with Broadcom. The chip will be utilized internally rather than sold to external customers, as OpenAI aims to reduce reliance on Nvidia and diversify its chip supply.