OpenAI, Broadcom Announce Partnership to Jointly Design and Develop AI Chips

OpenAI and Broadcom’s collaboration will result in the development and deployment of 10 gigawatts of custom AI chips.

Advertisement
Written by Akash Dutta, Edited by Ketan Pratap | Updated: 14 October 2025 10:41 IST
Highlights
  • OpenAI will design the chipsets in-house
  • The two companies have signed a term sheet for the multi-year deal
  • Broadcom is OpenAI’s fourth AI hardware partner

Sam Altman said AI is the biggest joint industrial project in human history

Photo Credit: OpenAI

OpenAI and Broadcom announced a multi-year strategic collaboration on Monday. As part of the deal, the two companies will jointly design and develop chips and systems to power the world's growing artificial intelligence (AI) compute demands. The two companies will collaborate to develop 10 gigawatts of custom AI accelerators. The move also marks the San Francisco-based AI giant's second official foray into the hardware space, after the under-development AI device, which is being built in partnership with Jony Ive.

OpenAI to Design AI Chips

In a post, the ChatGPT maker announced a strategic partnership with Broadcom to develop 10GW worth of custom AI accelerators, highlighting that the two companies have signed a term sheet for the same. In this collaboration, OpenAI will be designing the chipsets that can handle heavy AI workflows, while Broadcom will fabricate and deploy them. The San Jose-based semiconductor giant will also provide Ethernet solutions to help the AI system scale.

OpenAI says that by designing its own chips and systems, it can apply its learnings from developing large language models (LLMs) and products such as the ChatGPT and Sora apps. Essentially, these systems will be optimised for the AI giant's workloads. Additionally, these systems will be deployed across the company's facilities and partner data centres to meet the compute demand of third parties as well.

Advertisement

“Partnering with Broadcom is a critical step in building the infrastructure needed to unlock AI's potential and deliver real benefits for people and businesses. Developing our own accelerators adds to the broader ecosystem of partners, all building the capacity required to push the frontier of AI to provide benefits to all humanity,” said Sam Altman, Co-Founder and CEO of OpenAI.

Advertisement

While the financial details of the deal were not disclosed, the post stated that Broadband will have exclusive rights to bring the racks and the Ethernet solutions for the AI chips. Interestingly, this marks the fourth partnership forged by OpenAI to scale the compute for its AI needs. Oracle, Nvidia, and AMD are the other partners.

OpenAI said that ChatGPT has grown to more than 800 million weekly active users, alongside the adoption of its services across enterprises, small businesses, and developers. The rapid growth has exponentially increased the requirement for more servers to handle the workload.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. OPPO K14x 5G: Smoothness That Stays with You, Not Just on Day One
  2. OTT Releases This Week (Feb 23 - Mar 1): The Bluff, Ikkis, Psycho Saiyaan, and More
  3. Samsung Galaxy A57, Galaxy A37 EU Energy Labels Reveal Key Battery Details
  4. Poco X8 Pro Series India Launch Timeline, Poco X8 Pro Max AnTuTu Score Leaked
  5. Here's Why Apple Pay Might Be One Step Closer to Launching in India
  6. Here's When the Motorola Edge 70 Fusion Will Launch in India
  7. iQOO Z11x 5G Will Launch in India Soon With These Features
  8. Apple Teases Major Hardware Announcements Starting March 2
  9. Realme Narzo Power 5G to Launch in India With 10,001mAh Battery on This Date
  10. No New iPhone Air Rival or TriFold Yet, Samsung Executive Suggests
  1. Google Releases Nano Banana 2 With Faster AI Image Generation, Enhanced Text Rendering Capabilities
  2. Poco X8 Pro Series India Launch Timeline Leaked Alongside Poco X8 Pro Max Benchmark Results
  3. Samsung Galaxy A57, Galaxy A37 EU Energy Labels Reveal Battery Capacity, Endurance and Durability Details
  4. Samsung Reportedly Rules Out New iPhone Air Rival, Tri-Fold Successor Amid Weak Demand
  5. Apple Teases Major Hardware Announcements Starting March 2; iPhone 17e and Low-Cost MacBook May Debut
  6. James Webb Telescope Captures Stunning Infrared View of Exposed Cranium Nebula
  7. Instagram to Warn Parents When Teens Search for Self-Harm Content
  8. Apple Said to Lower iPhone Fold's Crease to Under 0.15mm; First Foldable Still Expected to Debut in 2026
  9. Nothing Headphone (a) Confirmed to Launch Alongside the Upcoming Nothing Phone 4a Series
  10. Poco X8 Pro, Poco X8 Pro Max Appear on TDRA Database Hinting at Imminent Global Debut
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.