AI and neural networks

OpenAI makes its own AI chips with Broadcom’s help

OpenAI makes its own AI chips with Broadcom’s help

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The partnership with Broadcom complements OpenAI’s previous agreements with NVIDIA and AMD. NVIDIA will invest $100 billion in the company and provide 10 gigawatts of computing infrastructure. In turn, the agreement with AMD calls for 6 gigawatts of capacity — OpenAI will pay tens of billions of dollars and possibly receive up to 10 percent of AMD’s stock. Infrastructure deployment with NVIDIA and AMD will begin in the second half of 2026. In addition, in July, OpenAI signed a contract with Oracle for 4.5 gigawatts of capacity for the Stargate project.

OpenAI has also signed a contract with Oracle for 4.5 gigawatts of capacity for the Stargate project.

Sources said OpenAI CEO Sam Altman told employees that he intends to grow the company’s total computing capacity to 250 gigawatts over the next eight years — versus about 2 gigawatts expected by the end of this year. By comparison, that’s nearly one-fifth of all U.S. power capacity (about 1,200 gigawatts).

But realizing these ambitious plans will require enormous investment. It’s estimated that it would cost about $10 trillion to buy that amount of capacity. Altman acknowledged that OpenAI will have to develop new financial instruments to achieve this goal, but has not yet disclosed details. Even the current agreements already involve spending hundreds of billions of dollars.

Despite major investments from NVIDIA and Microsoft, no investor in the world has yet been able to invest in OpenAI to the tune of $10 trillion. Moreover, the company’s revenues are far from that scale &#8212 OpenAI is projected to earn about $13 billion in 2025.

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