OpenAI Gandeng Broadcom For First AI Chip Production, Ready To Compete With Nvidia And AMD

Cooperation between OpenAI and Broadcom, will provide a new AI chip (photo: x @Openanewsroom)

JAKARTA The artificial intelligence giant (AI), OpenAI, officially collaborated with Broadcom to produce its first AI processor. This move is part of OpenAI's great strategy to strengthen control over the supply of computing power that is urgently needed to support services such as ChatGPT, as global demand for AI technology soars.

Broadcom shares immediately skyrocketed by more than 7 percent in early trading following this announcement. The two companies stated that OpenAI will design the chip, while Broadcom will develop and implement it starting in the second half of 2026.

This ambitious project includes a dedicated chip with a total capacity of 10 gigawatts, equivalent to electricity needs of more than 8 million households in the United States, or about five times the power output of the Badminton Dam.

"Cooperation with Broadcom is an important step in building the infrastructure needed to unlock AI's full potential," said OpenAI CEO Sam Altman, quoted by VOI from Reuters.

Although the financial details of this agreement have not been disclosed, this step marks the continuation of OpenAI's large line of investments in the AI chip sector.

Previously, OpenAI signed a 6 gigawatt chip supply deal with AMD, which included options for OpenAI to buy shares in the company. Shortly before, Nvidia also announced an investment of up to 100 billion US dollars in OpenAI as well as a plan to provide a data center system with a minimum capacity of 10 gigawatts.

OpenAI and Broadcom's collaboration places the company on par with cloud computing giants such as Google and Amazon, which are also developing homemade AI chips. The goal is to reduce dependence on Nvidia's limited stock of expensive chips.

However, this step is not without risk. Similar efforts by Microsoft and Meta have reportedly been delayed and have not been able to match Nvidia's chip performance. Analysts think that in the short term, custom chips will not destabilize Nvidia's dominance.

Even so, Broadcom has become one of the big winners of a generative AI explosion. The company, formerly known as a network device manufacturer, has almost six times increased share price since late 2022.

In September 2025, Broadcom even announced a custom AI chip order worth $10 billion from a new customer who at that time had not been named and now it is proven that the customer is OpenAI.

Broadcom and OpenAI ensure that the full implementation of this custom chip will be completed by the end of 2029, expanding development and supply cooperation that has been running between the two parties.

The new system will later fully use Broadcom's Ethernet network devices and connectivity technology, providing a competitive advantage over smaller competitors such as Marvell Technology, as well as a serious challenge to Nvidia's InfiniBand network solution.

This collaboration is not just a matter of chips, but about the struggle for power in the global AI ecosystem, where every watt of computing power is now worth gold.