OpenAI Partners with Broadcom to Build Custom AI Chips in Major Multi-Year Deal

OpenAI has announced a major partnership with Broadcom to create its first custom artificial intelligence (AI) processors. This agreement follows earlier deals OpenAI made with chipmakers Nvidia and AMD, showing its commitment to securing all the computing power it needs for its growing AI services.

Under the new multi-year deal, OpenAI and Broadcom will work together to develop custom AI accelerators and networking systems for next-generation data centers. They plan to deploy 10 gigawatts' worth of these powerful chips starting in the second half of 2026 and continuing through the end of 2029.

The collaboration is expected to involve multibillion-dollar investments and will include Broadcom delivering racks of AI chips and Ethernet networking gear, helping OpenAI scale up its computing clusters for advanced AI models.

OpenAI needs more powerful and efficient chips to support its AI services. By working with Broadcom, OpenAI can design custom processors that better meet its needs.

Broadcom will benefit from a large, multi-year order for its custom chips and networking products, which helps drive its business and stock value.

OpenAI and Broadcom plan to start deploying the new chips in the second half of 2026, with the rollout continuing through 2029.

No. OpenAI has agreements with Nvidia and AMD and this deal adds to those partnerships. Custom Broadcom chips will enhance OpenAI's options for meeting its growing computing needs.

The Motley Fool

AMD's deal with OpenAI has shaken up the artificial intelligence (AI) investing landscape. By partnering with OpenAI, AMD is making an effort to bring its AI chips into the mainstream by giving OpenAI favorable terms for using them.

Market Watch

OpenAI, which recently inked arrangements with Nvidia and AMD, is now turning to Broadcom's custom chips as it continues its quest for computing power.

CNBC

OpenAI has also announced massive compute commitments in recent weeks with Nvidia, Oracle and AMD.

Reuters

OpenAI has partnered with Broadcom to produce its first in-house artificial intelligence processors, the latest chip tie-up for the ChatGPT maker as it races to secure the computing power needed to meet surging demand for its services.

NYTimes

After signing multibillion-dollar agreements to use chips from Nvidia and AMD, OpenAI plans to deploy its own designs next year.

GlobeNewsWire

Multi-year partnership enables OpenAI and Broadcom to deliver accelerator and network systems for next-generation AI clusters News: OpenAI and Broadcom will co-develop systems that include accelerators and Ethernet solutions from Broadcom for scale-up and scale-out Broadcom to deploy racks of AI acc...

WSJ

The companies plan to deploy 10 gigawatts of custom AI chips over the next four years.

CNBC

Broadcom chip head Charlie Kawwas said OpenAI is not the mystery $10 billion customer that was revealed in the company's Q3 earnings report. Analysts predicted that AI startup OpenAI was the unnamed customer.

CNBC Television

OpenAI and Broadcom said Monday that they're jointly building and deploying 10 gigawatts of custom artificial intelligence accelerators as part of a broader effort across the industry to scale AI infrastructure.

Barrons

The pair will begin deploying the systems in the second half of 2026.

Proactive Investors

Broadcom Inc (NASDAQ:AVGO, ETR:1YD) shares jumped 7.7% on Monday, adding about $126 billion to the company's market value, after announcing a major partnership with OpenAI to develop custom artificial intelligence chips. Under the agreement, OpenAI will design the processors while Broadcom handles p...

CNBC

Chip stocks bounced as OpenAI announced another computing deal with a major chipmaker and U.S.-China tensions eased. President Donald Trump said to not worry about China in a post to Truth Social over the weekend and it “will all be fine,” quelling some market fears.

CNBC Television

Broadcom chip head Charlie Kawwas said on Monday that OpenAI is not the mystery $10 billion customer that was revealed in the company's Q3 earnings report. Kawwas appeared on CNBC's “Squawk on The Street” with OpenAI's President Greg Brockman to discuss their plans to jointly build and deploy 10 gig...

Finbold

Broadcom (NASDAQ; AVGO) is the latest company to see its share price rally after striking a deal with artificial intelligence (AI) firm OpenAI.

CNBC Television

Charlie Kawwas, Broadcom president, and Greg Brockman, OpenAI co-founder, join CNBC's ‘Squawk on the Street' to discuss a new multi-year partnership between OpenAI and Broadcom to develop custom chips.

Invezz

Broadcom Inc (NASDAQ: AVGO) rallied more than 10% on Monday after OpenAI confirmed it has partnered with the chipmaker to co-develop and deploy 10 gigawatts of custom AI accelerators. The announcement marks a major milestone in OpenAI's infrastructure expansion, and follows 18 months of quiet collab...

Invezz

Semiconductor shares rebounded sharply on Monday, recovering from Friday's steep selloff, after OpenAI and Broadcom announced a new artificial intelligence chip partnership and tensions between the US and China appeared to ease. The VanEck Semiconductor ETF jumped nearly 4%, while Nvidia and Advance...

Invezz

Broadcom Inc (NASDAQ: AVGO) disclosed a major artificial intelligence (AI) infrastructure deal with OpenAI this morning – confirming plans to co-develop and deploy 10 gigawatts of custom accelerators.

Investors Business Daily

Broadcom stock jumped after the chipmaker announced a deal to supply AI processors for artificial intelligence leader OpenAI.

Investopedia

OpenAI isn't publicly traded. But when it acts, stocks often move.

CNBC Television

OpenAI and Broadcom have been collaborating for 18 months on a new line of co-designed chips optimized for inference and networked through Broadcom's Ethernet stack. The companies announced plans to develop and deploy racks of OpenAI-designed chips starting late next year.

Schwab Network

Broadcom (AVGO) surged after penning a massive deal with OpenAI that includes building 10 gigawatts of custom A.I. accelerators to enhance OpenAI's infrastructure.

Seeking Alpha

Broadcom (AVGO) surges after announcing a major deal with OpenAI to co-develop custom AI accelerators and systems for global deployment. Beyond Meat (BYND) plunges as shareholders face significant dilution from a convertible debt exchange offer involving $1.1 billion in notes and new shares.

Benzinga

BofA Securities analyst Vivek Arya highlighted key considerations for the U.S. semiconductor sector amid the artificial intelligence frenzy and potential concerns about a bubble.

Yahoo Finance

OpenAI doubles down on Broadcom partnership.

CNBC Television

CNBC's MacKenzie Sigalos reports on news regarding OpenAI and Broadcom.

Schaeffers Research

It's Broadcom Inc (NASDAQ:AVGO) stock's turn to get a boost from OpenAI , after the two made their partnership official.

Yahoo Finance

Prairie Operating Company executive vice president of market strategy and TheBigSkinny.com founder, Lou Basenese, Yahoo Finance Senior Reporter Brooke DiPalma, and Yahoo Finance Fed Correspondent Jennifer Schonberger join Opening Bid with Allie Canal to discuss Monday's stock of the day: Broadcom (A...

Investopedia

Semiconductor stocks gained ground Monday as China tariff concerns dissipated, while one chipmaker got a boost from a major artificial intelligence partnership announcement. Shares of casino operators fell as stormy weather dragged on gaming revenue in a key region.

Bloomberg Technology

OpenAI signed a multiyear agreement with Broadcom to collaborate on custom chips and networking equipment, marking the startup's latest deal with a semiconductor maker. Bloomberg Intelligence analyst Mandeep Singh discusses what this Broadcom deal offers OpenAI that the deals with Nvidia and AMD don...

Bloomberg Markets and Finance

CNBC

Broadcom CEO Hock oh Tan says generative AI's contributions to the global GDP will increase in an interview with CNBC's Jim Cramer. Tan said the current GDP sits around $110 trillion, with 30% "valued from industries related to knowledge-based, technology-intensive," and generative AI could grow tha...

CNET

OpenAI says developing its own chips will let the company use what it learned developing frontier AI models.

CNBC Television

Broadcom and OpenAI have made their partnership official. The two companies said Monday that they're jointly building and deploying 10 gigawatts of custom artificial intelligence accelerators.

CNBC Television

Broadcom President and CEO Hock Tan joins 'Mad Money' host Jim Cramer to talk the recently announced deal with OpenAI, competition in the space, and more.

GlobeNewsWire

New license option to help scale vibrant edge of smartphones, PCs, automotives and IoT devices in support of AI-first access devices New license option to help scale vibrant edge of smartphones, PCs, automotives and IoT devices in support of AI-first access devices

WSJ

Broadcom is hitching its future to Sam Altman's vision.

The Motley Fool

AMD's (AMD 0.72%) deal with OpenAI has shaken up the artificial intelligence (AI) investing landscape. The terms of the deal are unique, as AMD is essentially providing OpenAI with chips in exchange for shares of AMD that vest as certain milestones are reached.

Reuters

Broadcom is launching a new networking chip on Tuesday that will help companies build artificial intelligence computing systems by stringing together hundreds of thousands of chips that crunch data, deepening its rivalry with Nvidia.

The Motley Fool

The biggest chipmakers in the world, including Nvidia (NVDA 2.83%) and Broadcom (AVGO 9.94%), rely on just one manufacturer to make their high-end semiconductors.

PRNewsWire

Beginning in calendar Q3 2026, Oracle will be the first hyperscaler to offer a publicly available AI supercluster powered by 50,000 AMD Instinct MI450 Series GPUs LAS VEGAS and SANTA CLARA, Calif. , Oct. 14, 2025 /PRNewswire/ -- Oracle AI World -- Oracle and AMD (NASDAQ: AMD) today announced a major...

Reuters

Oracle will offer cloud services using Advanced Micro Devices' upcoming MI450 artificial intelligence chips, the companies said on Tuesday, as they rush to tap the booming demand for infrastructure to support tools such as ChatGPT.

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Tech companies extend their deal sprees for data-center deployments into 2027 and beyond

CNBC

Oracle Cloud Infrastructure on Tuesday announced that it will deploy 50,000 Advanced Micro Devices graphics processors starting in the second half of 2026. The move is the latest sign that cloud companies are increasingly offering AMD's GPUs as an alternative to Nvidia's market-leading GPUs for arti...

CNBC

Shares of Broadcom popped nearly 10% after the company made its partnership with OpenAI official. Big banks kicked off the new earnings season on a positive note.

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Regardless of this year's stock market volatility, the explosive demand for semiconductors and microchips that has grabbed news headlines and led the market higher over the past few years remains.

Zacks Investment Research

Zacks.com users have recently been watching Broadcom Inc. (AVGO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Forbes

AMD's expanded partnership with Oracle follows a multibillion-dollar deal announced last week between the chipmaker and OpenAI. As part of the deal, OpenAI will acquire and deploy 6 gigawatts of AMD's AI chips, starting with a 1-gigawatt deployment in 2026, and AMD will issue OpenAI a warrant for up...

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AMD is set to deploy 50,000 AI chips in Oracle data centers in the second half of 2026. It follows AMD's recent mega chip deal with OpenAI, with both partnerships a boost against rival Nvidia.

ETF Trends

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Invezz

Oracle and Advanced Micro Devices are deepening their collaboration to meet growing global demand for artificial intelligence infrastructure. According to the press release, Oracle will integrate AMD's forthcoming MI450 chips into its cloud services, starting with 50,000 processors in the third quar...

Investors Business Daily

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Investors Business Daily

Broadcom on Tuesday boasted that it has set a new benchmark for performance in AI scale-out networking with Thor Ultra.

TechXplore

Oracle and Advanced Micro Devices are expanding their partnership with the deployment of 50,000 AMD graphic processing units beginning in the third quarter of 2026 with further expansion to follow.

Seeking Alpha

Broadcom secures a landmark 10GW AI infrastructure partnership with OpenAI. The deal could add up to $200 billion in incremental revenue through 2029, transforming AVGO's total addressable market and growth trajectory. While near-term profitability may be diluted, AVGO's robust moat in custom comput...

Seeking Alpha

Broadcom secures a transformative multiyear AI infrastructure deal with OpenAI, the world's most important company amid the generative AI revolution. The deal is not a one-off project but a multi-year commitment running through 2029. Broadcom will not just be selling chips to OpenAI but will provide...

Investopedia

Broadcom (AVGO) shares dropped Tuesday morning, giving back a portion of the big gains posted yesterday following news that the chip giant had forged a deal with ChatGPT maker OpenAI.

Forbes

Over the past decade, Broadcom stock (NASDAQ: AVGO) has returned an impressive $51 billion to its investors through direct cash in the form of dividends and buybacks. This shareholder-focused strategy has delivered extraordinary results in 2025, with the stock posting a remarkable 50% year-to-date r...

Zacks Investment Research

AVGO shares soar after sealing a major AI accelerator deal with OpenAI, underscoring its growing dominance in next-gen chip development.

Proactive Investors

Oracle Corp (NYSE:ORCL, ETR:ORC) Cloud Infrastructure on Tuesday unveiled plans to deploy 50,000 Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) Instinct MI450 AI processors starting in the second half of 2026, signaling a major expansion of its partnership with the chipmaker. The MI450 chips are A...

Benzinga

Broadcom Inc (NASDAQ:AVGO) has long been seen as a steady cash generator with a reliable dividend. But the buzz around its OpenAI tie-up signals something bigger.

Benzinga

Broadcom (NASDAQ:AVGO) and OpenAI have launched a multi-year partnership to deploy 10 gigawatts of custom artificial intelligence silicon and rack-level systems, integrating compute Application-Specific Integrated Circuits (ASICs) along with Broadcom's Ethernet, Peripheral Component Interconnect Exp...

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OpenAI Partners with Broadcom to Build Custom AI Chips in Major Multi-Year Deal

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