OpenAI has officially announced a partnership with Broadcom that aims to co-develop up to 10 gigawatts of AI accelerators, marking a significant move in the rapidly evolving AI sector. This news arrives just a week after OpenAI revealed a multiyear, multibillion-dollar agreement with AMD for the supply of up to 6 gigawatts of AI processors, underscoring the startup’s aggressive strategy to enhance its technological capabilities.
Following the announcement, shares of Broadcom surged more than 9% in early trading, reflecting investor enthusiasm for the collaboration. OpenAI, valued at approximately $500 billion, currently holds the title of the world’s most valuable startup, surpassing prominent companies such as SpaceX.
Under the newly formed partnership, OpenAI will be responsible for designing the AI accelerators and systems, followed by their development and deployment in collaboration with Broadcom. “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,” stated OpenAI CEO Sam Altman. He emphasized that the creation of in-house accelerators contributes to a wider ecosystem of partnerships aimed at enhancing AI capabilities for the benefit of humanity.
This latest deal reflects a growing trend among tech companies to design their own custom silicon chips in a bid to reduce dependency on established players like Nvidia and AMD. Companies such as Google, Amazon, and Microsoft have already ventured into developing their own AI chips, though they are unlikely to completely sever ties with Nvidia or AMD in the near future.
In a notable context, OpenAI has also recently entered into a $100 billion agreement with Nvidia, which will facilitate the deployment of up to 10 gigawatts of Nvidia systems. The startup is currently on a deal-making spree, having collaborated with other firms, including CoreWeave and launching its Project Stargate initiative with Oracle.
While these partnerships present promising advancements for OpenAI, they also raise questions about the sustainability of its spending practices, as the company has yet to turn a profit. Critics are increasingly concerned about the potential for an AI bubble, where excessive investments could outstrip the real-world viability of emerging technologies.
During a discussion at Italian Tech Week earlier this month, Amazon founder Jeff Bezos remarked on the current excitement surrounding AI investments, suggesting that we may indeed be in the midst of an AI bubble. “When people get very excited, as they are today, about artificial intelligence, for example … every experiment gets funded, every company gets funded,” Bezos noted, highlighting the difficulty investors face in distinguishing between viable ideas and those that may not succeed.
OpenAI’s expanding network of partnerships further cements its position in the AI market, collaborating with major players across various sectors:
- Infrastructure and chip partners: Nvidia, AMD, Microsoft, Oracle, Google, Amazon, CoreWeave, Broadcom, Samsung
- Apps integration: Booking.com, Canva, Coursera, Figma, Expedia, Spotify, Zillow
- Media licensing: Financial Times, The Atlantic, Vox Media, News Corp
- Other: Salesforce, Mattel, DoorDash, Instacart, Etsy
As OpenAI continues to make strategic moves within the industry, the implications of these partnerships could significantly shape the future landscape of artificial intelligence technology.
