OpenAI has announced a major multi-year deal with Broadcom to co-design and produce custom AI processors, marking its boldest move yet toward vertical integration in artificial intelligence infrastructure. The partnership aims to deploy up to 10 gigawatts of AI computing capacity by 2029, with rollout beginning in 2026, as reported by Reuters and AP News.
Under the agreement, OpenAI will design the chip architecture while Broadcom handles manufacturing and networking integration. The collaboration is expected to reduce OpenAI’s dependence on Nvidia and other GPU suppliers while optimizing hardware for its next generation of large language models.
For OpenAI, the Broadcom alliance offers tighter control over performance and costs—but also raises questions about governance, capital risk, and market concentration. Regulators may take notice as AI developers increasingly consolidate both software and hardware capabilities under one roof.
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