OpenAI partners with Broadcom to produce the first artificial intelligence processors
October 14, 2025
OpenAI has entered into a partnership agreement with Broadcom to produce the first artificial intelligence processors within its facilities. This is the latest partnership concluded by the company that developed the Chat GPT application at a time when it is racing to secure the computing power necessary to meet the growing demand for its services.
Broadcom shares rose more than seven percent in early trading.
The two companies said Monday that OpenAI will design the chips that Broadcom will develop and deploy starting in the second half of 2026.
The two companies will offer custom chips with a total computing power of 10 gigawatts, and their energy consumption is approximately equivalent to the needs of more than eight million American homes, or five times the electricity produced by the Hoover Dam.
This agreement is the latest in a series of huge investments in artificial intelligence chips that highlight the technology industry’s growing appetite for computing power as it races to build systems that match or exceed the level of human intelligence.
Last week, OpenAI revealed a deal to supply artificial intelligence chips with a capacity of six gigawatts with AMD, which includes an option to buy a stake in the chip manufacturing company, days after revealing Nvidia’s intention to invest up to $100 billion in the emerging company and provide it with data center systems with a capacity of no less than 10 gigawatts.
Sam Altman, CEO of OpenAI, said in a statement "Partnering with Broadcom is a critical step in establishing the infrastructure needed to harness the potential of AI".
The financial details of the agreement were not disclosed, and it is not yet clear how OpenAI will finance the deal.