OpenAI Partners with Broadcom to Design Its Own AI Chips
In a major move to strengthen its artificial intelligence (AI) infrastructure, OpenAI has announced a strategic partnership with Broadcom to develop custom AI accelerators and build high-performance computing systems.
The collaboration will combine OpenAI’s advanced model expertise with Broadcom’s cutting-edge semiconductor and networking technology to deliver a new generation of AI hardware optimised for speed, scalability, and energy efficiency.
Both companies have signed an agreement to produce racks of AI servers that will use Broadcom’s high-speed Ethernet-based networking to interconnect systems. The goal is to generate 10 gigawatts of computing power to support OpenAI’s expanding suite of AI tools and products.
The project will begin in 2026 and is expected to be completed by 2029, marking one of the largest infrastructure undertakings in the AI industry.
A Milestone for AI Infrastructure Development
OpenAI’s co-founder and CEO, Sam Altman, described the partnership as a landmark step toward building the infrastructure required to unlock AI’s full potential.
“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,” Altman said. “Developing our own accelerators adds to the broader ecosystem of partners all building the capacity required to push the frontier of AI to provide benefits to all humanity.”
By creating its own accelerators, OpenAI plans to integrate insights from developing frontier models like GPT directly into the hardware, ensuring superior performance, scalability, and energy efficiency.
Broadcom’s Role in Powering the Next Wave of AI
Broadcom’s President and CEO, Hock Tan, emphasised the partnership’s role in shaping the next evolution of AI systems.
“Broadcom’s collaboration with OpenAI signifies a pivotal moment in the pursuit of artificial general intelligence,” Tan said. “We are thrilled to co-develop and deploy 10 gigawatts of next-generation accelerators and network systems to pave the way for the future of AI.”
Tan added that the collaboration highlights how semiconductor innovation and AI research can converge to push the boundaries of computing performance.
OpenAI’s Vision for Scalable and Accessible AI
Greg Brockman, OpenAI’s co-founder and President, explained that building custom chips allows the company to directly apply lessons from developing advanced AI models.
“The collaboration with Broadcom will help us achieve major progress in AI performance and accessibility,” Brockman said. “Designing our own chips enables us to create faster, smarter, and more efficient AI systems.”
This approach positions OpenAI among a small group of tech leaders, such as Google, Amazon, and NVIDIA, that design both large-scale AI models and the specialised hardware needed to power them.
Building the Future of AI Infrastructure
Charlie Kawwas, President of Broadcom’s Semiconductor Solutions Group, stated that the partnership will redefine AI infrastructure standards.
“The integration of OpenAI’s accelerators with Broadcom’s Ethernet, PCIe, and optical connectivity technologies sets new benchmarks for scalable, energy-efficient systems,” Kawwas noted.
Broadcom’s focus will be on developing Ethernet-based networking systems capable of handling massive AI workloads with unmatched performance and reliability.
OpenAI’s Rapid Expansion and Strategic Acquisitions
The Broadcom partnership is part of OpenAI’s broader effort to expand its computing and hardware capabilities.
In April 2025, OpenAI raised $40 billion in a record-breaking funding round that valued the company at about $300 billion. The round was led by SoftBank, with participation from Microsoft, Coatue, Altimeter, and Thrive Capital. The funding will support OpenAI’s AI research and infrastructure growth.
OpenAI also made several major acquisitions in 2025:
- io Products – A $6.5 billion all-stock acquisition of a startup co-founded by former Apple design chief Jony Ive, who will now serve as Creative Head at OpenAI, leading hardware and product design.
- Windsurf (formerly Codeium) – A $3 billion deal to acquire the AI coding assistant platform to enhance developer tools and natural language programming.
- Statsig – A $1.1 billion purchase to strengthen product testing and analytics, with founder Vijaye Raji joining as Chief Technology Officer of Applications.
Additionally, OpenAI signed a $300 billion, five-year cloud computing deal with Oracle, securing 4.5 gigawatts of computing capacity to power AI model training and deployment.
Conclusion
The OpenAI–Broadcom partnership marks a turning point in the AI industry. By co-developing custom chips and AI infrastructure, the two companies are setting new standards for computing performance, energy efficiency, and scalability.
As OpenAI continues to innovate across software, hardware, and infrastructure, this collaboration positions it at the forefront of the global race to build smarter, faster, and more efficient AI systems that can power the next era of digital intelligence.
