ChatGPT Update: ChatGPT And Sora Known for advanced AI platforms like OpenAI Now it has taken a big step towards further enhancing its technical capabilities. The company has announced to develop its first in-house AI processor in collaboration with Broadcom. This decision has been taken with the aim of meeting the growing demand for the company’s AI services, especially ChatGPT, and strengthening the computing infrastructure. After this news, Broadcom shares rose by more than 10%.
According to reports, OpenAI will design the chip, while Broadcom will handle its development. It is expected that the company will start deploying these chips by the second half of 2026. These custom AI chips will have a capacity of 10 gigawatts, whose power consumption is said to be equivalent to about 8 million US homes. Experts believe that while this partnership is a big step forward in the AI industry, it is not currently a direct threat to NVIDIA’s AI accelerator market, as in-house chip design and production is a complex and challenging process.
OpenAI also recently announced a 6 gigawatt AI chip supply deal with AMD. At the same time, NVIDIA plans to invest up to $100 billion in OpenAI and provide data-center systems with 10 gigawatt capacity. Sam Altman, CEO of OpenAI, said about this partnership, “The partnership with Broadcom is an important step towards building the infrastructure needed to realize the potential of AI.”
Today, all the big tech companies like Google, Amazon, Microsoft and Meta are developing their own custom AI chips in view of the increasing demand for AI. Broadcom has become the biggest beneficiary of this generative AI boom, with its share price rising sixfold since the end of 2022. However, so far custom chips from companies like Microsoft and Meta have not been able to reach Nvidia’s performance levels.
OpenAI has set an aggressive timeline for producing its in-house chips by 2026. Analysts say that to make this deal successful, the company will need funding rounds, pre-orders, strategic investment and Microsoft’s support. The cost of a one gigawatt capacity data center is said to be $50 to $60 billion. This partnership between OpenAI and Broadcom will provide a new direction to AI processing capabilities and promote rapid innovation and competition in the AI chip market.
